Tax authority faced with ISV (imported second-hand vehicle) nightmare

Since losing an initial round of cases in court, the AT tax authority is facing a 30% increase in the number of challenges to the way it charges ISV duty on second hand vehicles being imported into this country from other EU member states. In all cases so far, AT has been ordered to repay excess charges with interest.

Challenges through the courts currently involve upwards of €750,000.

This subject has been bubbling away for years. It came to head last month when Brussels decided to take Portugal to court for violating article 110 of the Treaty for the Functioning of Europe (click here).

Says Público, judges at Lisbon’s CAAD (centre for administrative arbitration) have found in favour of 11 cases challenging the calculations behind ISV import duty, and there are many more stacking up in the pipeline.