THE EUROPEAN Commission has told Portugal to stop charging VAT (IVA) on top of the IA, Imposto Automóvel or Car Purchase Tax.
According to a community executive, the Commission considers that VAT (IVA) should not be charged on top of the vehicle tax. Portugal has been given a deadline of two months to alter the legislation and if this doesn’t happen, the case will be taken to the European Community Justice Court.
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