EU takes Austria to court on car registration VAT
The European Commission said today that it has taken Austria to the European Court of Justice for the inclusion of car registration tax in the taxable base on which VAT is calculated.
"The Commission considers that VAT should not be applied on top of the car registration tax," the commission said in a statement.
It noted that in another court case (Case C-98/05) which referred to the registration car tax levied in Denmark, the European Court had ruled that, in the context of a sale contract providing that the dealer will supply a vehicle registered for a price which includes the registration tax he paid before supplying the vehicle, the amount of that duty must be excluded from VAT. It said that registration tax is due in relation with the registration of the vehicle and not triggered by the supply and, registration tax is paid by the supplier of the vehicle on behalf of the purchaser.
The Commission has already referred Poland to the European Court on a similar case.
In Malta, a number of cases have been filed before the local courts, demanding refunds of VAT paid on registration tax before the law on registration tax was amended.
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E Gatt
Oct 9th 2009, 17:37
@Christian Azzopardi
If the Courts decide that you have a right for a refund, you will get what is 'rightfully' yours.
If the Courts decide that you do not have a right for a refund, the money will not be 'rightfully' yours, so you should not get paid.
My point is that you, I and our politicians should respect the Court's decision.
Christian Azzopardi
Oct 9th 2009, 00:19
@E Gatt I personally don't care if the taxpayer will have to pay for the refund. I never took any of your money (as a taxpayer) as far as I know, and I just want what it's rightfully mine.
Joseph Vassallo
Oct 8th 2009, 22:28
@ E Gatt: You said, "If the refunds are due, or if PL form the next government in 2013, then the taxpayer will have to foot the bill." I'm saying: "Naturally, since the taxpayer is already in possession of the coerced (there was no other choice left other than to pay) amounts." The communal-taxpayers' representative government has no intention of returning the amounts and as such will be deemed to have converted the sums taken from the individual citizen to add to the community coffer. This is abuse of power reminiscent of a bygone era when elected members dictated and the man in the street obeyed. The beauty of democracy is that we get to choose which dictators we want.
E Gatt
Oct 8th 2009, 17:24
This talk of ‘cheating’, and ‘stealing’ is an exaggeration in my opinion. It was a gray area and subject to interpretation. When the EU’s position become clearer, Malta adopted a new system of car registration. Today, the EU Commission cleared Malta on its present tax registration system.
The Government has repeatedly declared that should the Courts decide that a refund is due to individuals who bought their vehicles before 2009, then these refunds will be paid. If the Courts decide that a refund is not due, then the Government will not pay. This is the correct position to take.
The Opposition has declared that it will ignore the Court’s decision if the Court decides that the refunds are not due.
If the refunds are due, or if PL form the next government in 2013, then the taxpayer will have to foot the bill.
Roy Williams (Wales)
Oct 8th 2009, 16:17
I've got a feeling that the little Lion is going to start trembling, small as it is will be brought down to size and why not? there are too many people who were cheated illegally by the Maltese government on paying unnecessary VAT on second hand imported vehicles. Period.
Roy Williams Wales
Jeff Rogerson
Oct 8th 2009, 16:11
Myself as a Brit. who paid a hell of alot of re registration tax on my family car brought in from my countryof which i may add has already been registered once in the country of origin, would not waste time with the local law courts as this would drag on for many years however i would go straight to the top and thats the european court of justice. No messing about> just like Austria and Poland, Denmark and now i believe the turn would be for the little lion, much sooner then later.
Mark Cushcieri
Oct 8th 2009, 16:08
Yes dr.Muscat was right and the goverment was in the wrong..were are the Pn Agologists I dont know however...I dont think they liked this news..even though I did not stand to benefit from this since I did not import any cars..I always stand for what is right...and refunding those people was the right thing to do...thanks to Dr. Muscat these people got their money back..I hope they don't forget this in the next election..that the goverment wanted to greedily take away their money while Dr.Muscat stood for what is right...we will be seeing more great things happening from this man. This is one of the advantages of EU...if you are discrimiated by your goverment you can take him to court in the EU.
jmicallef
Oct 8th 2009, 16:01
@joseph sciberras - it's the other way round actually - VAT on registration tax, but valid point..
@ Paul Barrett - I agree with you - I would contest the whole aspect of registration tax levied on used cars. Once a registration tax has been levied on a car in the EU, then that's car is effectively registered to run on EU roads so there should not be the same tax levied if it changes country. It's like issuing a new birth certificate for someone who has gone to live in another country.
Notwithstanding all this -- this 'registration tax' is essentially a tax, and if it were not charged on cars it would be charged on something else. Whether we like it or not, that's reality.
p.azzopardi
Oct 8th 2009, 15:55
MELA ALLURA DR. MUSCAT KELLU RAGUN MHUX HEKK????????
carmel callus
Oct 8th 2009, 15:28
@ r mallia
It is not true that one has to register an imported car in Malta within one week of it's arrival. In Ireland one has to have such a car registered by the day following its arrival and in the UK such registration has to take place within the shortest time possible. In Malta the law says that the law says that a person importing a vehicle has to apply to have it registered and present all the required documents within 15 days from the vehicle's arrival in Malta.
D Bailey
Oct 8th 2009, 15:21
@R. Mallia
You are wrong, a quick Google search will reveal that in many EU states such as Ireland, the UK and Spain, residents have to register an imported car within a matter of days. Examples:
http://www.autoquake.com/ireland
http://www.direct.gov.uk/en/Motoring/BuyingAndSellingAVehicle/ImportingAndExportingAVehicle/DG_4022583
http://www.justlanded.com/english/Spain/Spain-Guide/Travel-Leisure/Importing-a-Car
I guess we're equal in some ways :)
R. Mallia
Oct 8th 2009, 15:07
When is the EU going to take Malta to court regarding the registration tax regime which is plainly daylight robbery and the recent ADT obscenities? ADT expects Maltese identity card owners to register an imported car within 1 week of its arrival in Malta. THIS IS ILLEGAL. All over the EU the time allowed for ALL PERSONS irrespective of citizenship or residence in 6 months.
Joseph Sciberras
Oct 8th 2009, 14:54
The law was changed as of this year, registration tax in Malta is no longer charged on VAT element.
Paul Barrett
Oct 8th 2009, 14:48
If only they would totally ban registration tax across the EU (at least on cars 1600cc and under) we could all probably get rid of our old bangers and actually afford to buy new cars.
Well I can dream can't I - LOL.
Mark Cushcieri
Oct 8th 2009, 14:44
haha Malta is next.
George Poitier
Oct 8th 2009, 14:38
Hey EU look, even Malta is doing the same thing and more !
Sue the Government for this theft?