European Commission took a Legal Action Against Portugal Before the Court of Justice of the European Union18 February, 2020
On 12 February, the European Commission filed a claim against Portugal before the Court of Justice of the European Union, due to the used vehicles imported from other Member-States still being subject to higher taxes than those applied to cars purchased in Portugal.
The Commission emphasized that the Portuguese legislation in question does not fully take into account the depreciation of vehicles imported from other Member States and is therefore incompatible with the Treaty, as under EU rules no Member State may impose, directly or indirectly, on products from other Member States, internal taxes more severe than those applied to similar national products.
This legal action follows an infringement procedure opened on 24 January 2019 against Portugal, where the Portuguese State was granted two months to review its legislation.
During the year of 2019, there were no changes to the calculation formula, so, on 27 November 2019, the European Commission granted the Portuguese State a month to review the ISV calculation on imported used vehicles.
Since there was no change on ISV calculation for imported vehicles, the Commission started this claim before the Court of Justice of the European Union.