ISV on imported cars is illegal: owners deserve at least partial reimbursements

ISV (Imposto Sobre Veículos, or Vehicle Excise Duty) levied on second-hand cars bought in another EU country has been deemed illegal by the European Court of Justice, opening the door for this much-contested tax to be discussed and amended in parliament when Portugal’s new government is in place. Taxpayers who bought a second-hand car from another country in the bloc after January 1, 2021, will be able to get some of the money they paid back, as long as they complain to the AT Tax Authority or challenge the situation in court. At stake are thought to be almost 280,000 passenger cars, say reports.

Natasha Donn
Natasha Donn

Journalist for the Portugal Resident.

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