EUROPEAN COMMISSION SEEKS LEGAL BAN ON CHARGING VAT ON CAR TAXES
October 1st, 2008
BY KEITH NUTHALL
THE EUROPEAN Commission is seeking to secure an important legal precedent at the European Court of Justice (ECJ) effectively banning all 27 European Union (EU) member states from charging VAT on car registration taxes.
It has launched a case against the Austrian government, which does just that, insisting that Austria-based car dealers include car tax amounts (called the 'Normverbrauchsabgabe-NoVA') within the overall price of a vehicle, charging VAT on the combined car price and registration fee.
The Commission claims this breaks EU VAT laws, ...
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