Brussels, 14/01/2016 (Agence Europe) - Member states cannot systematically charge registration tax on vehicles hired or leased in another member state.
In ruling in favour of the European Commission, the Court of Justice of the EU (case C-66/15) stated on Thursday 14 January that Greek legislation was damaging to the free provision of services.
Greek law states that, when a client who is resident in Greece hires or leases a vehicle from a supplier established in another member state, the full registration tax is to be paid by the hire or leasing company. This is irrespective of the duration of the hire/lease contract and the length of time the vehicle will be used in Greece.
The Court took the view that any such obligation is illegal as it could disadvantage leasing and hire companies established in other member states and deter them from providing their services in Greece. A member state may require payment of the registration tax under such circumstances but only if it takes account of the duration of the hire/lease contract and the length of time the vehicle will be used in Greece, the Court concluded. (Original version in French by Jan Kordys)