Between Portugal and the ISV tax, it's a great love story. This tax (impostor sobre veiculos) concerns vehicles imported from abroad, and often represents an unpleasant surprise for expatriates who come to settle in Portugal. Being able to easily reach several thousand euros, this tax is disputed by taxpayers but also by Europe. For the first time, the Portuguese tax authorities were ordered to reimburse the full ISV tax collected for a used car imported from Germany. Lisbob, the expatriate assistant in Portugal, tells you all about this new defeat of the Portuguese tax authorities regarding the ISV tax.
ISV tax : Portuguese tax authorities once again lose a constitutional court case
Portugal is keen on its ISV tax and will not give up, despite the setbacks that are accumulating. After losing the case before the Arbitral Tribunal, where the Portuguese tax authorities have already been ordered to reimburse the ISV tax on four occasions, the Portuguese tax and customs administration (TA) suffered another setback, this time before the Constitutional Court. Indeed, it was felt that with the decision of the Arbitral Tribunal, there was no question of a violation of a constitutional rule. However, the Court nevertheless invited the Portuguese tax authorities to reformulate their request, but the latter ended up presenting no new arguments and the appeal was considered to have been abandoned. Lisbob, the expatriate assistant in Portugal, tells you all about this new defeat of the Portuguese fiscal authorities regarding the ISV tax.
Brussels takes Portugal to court over ISV tax on imported vehicles
Brussels decides to carry out its threats is attacks Portugal in justice. The European Commission has brought an action against Portugal before the Court of Justice of the EU for the fact that used vehicles imported from other Member States continue to be subject to higher taxes than those applied used cars acquired on the Portuguese market. Brussels had given an ultimatum to Lisbon to change its legislation on the ISV tax but it did not do so, arguing that the calculation of the tax was thus done to fight against climate change. Lisbob, the expatriate assistant in Portugal, tells you all about this legal battle between Brussels and Lisbon over the ISV tax.
Record year for tax revenue in Portugal : € 46 billion in 2019, + 3.8%
You might be wondering why Portugal is so keen on its ISV tax ? Why does it apply a high IUC tax compared to other European countries ? Finally, why is gasoline so expensive in Portugal ? Taxes of course ! You will have some answers with the latest figures from the Portuguese tax authorities concerning the revenue for the year 2019 and the figures are quite good because Portugal harvested 1.68 billion more than in 2018. Revenues from the automotive sector and oil are notably up sharply. The Portuguese State thus collected 46 billion euros in tax in 2019 in total, a figure growing by 3.8% compared to 2018. In detail some taxes see their collection drop like the ISV, while the IUC breaks records. Lisbob, the expatriate assistant in Portugal, tells you everything about tax revennue in Portugal.
Portugual again condemned to reimburse ISV tax for imported vehicle : Lisbon challenges Brussels
Never 2 without 3. The Portuguese Tax and Customs Authority (AT) was again ordered to refund part of the tax on imported vehicles (ISV) it had collected for a used car from the foreign. This decision dates from last week but Portugal is doing everything to remain discreet, as the question of the ISV could open a Pandora's box. It is indeed the third unfavorable conviction in a row from the Portuguese State, which does not comply with judicial decisions and tries to win the dispute before the Constitutional Court. Despite Europe's admonitions, Portugal decides to continue its momentum. Lisbob, the expatriate assistant in Portugal, tells you all about the Portuguese government’s new defeat over the ISV.
Portugal ignores Brussels ultimatum by not changing ISV tax on imported cars and even chooses to raise it
It seems that Portugal is looking for a confrontation with Brussels over the ISV tax. Indeed, while the European Commission has imposed an ultimatum on Portugal to modify the calculation of the ISV tax, Lisbon has decided to turn a deaf ear to threats and will keep the ISV tax as it is. Worse, the Portuguese State Budget indicates an aggravation of the tax for the year 2020. Neither the defeats of the Portuguese taxman in the courts nor the threat of Brussels have changed the opinion of the economy ministry of Mário Centeno. What are the consequences of this Lisbon decision? How will Brussels react? Lisbob, the expatriate assistant in Portugal, tells you all about this increasingly open conflict between Lisbon and Brussels.
European Commission issues an ultimatum and orders Portugal to modify ISV tax on imported vehicles
Brussels decided to step up against Portugal in the conflict between them over the ISV tax on foreign vehicles imported into Portugal. Indeed, Brussels has notified Lisbon that it must amend its rules on the taxation of second-hand vehicles imported from other Member States of the European Union. Even more threatening, the European Commission has issued an ultimatum of one month in Portugal and force it to change its rules, or having to go to the European Court of Justice. This procedure against Lisbon started in 2016 because Brussels considers that imported vehicles are discriminated against vehicles sold on Portuguese territory. Is this the end of the ISV tax for imported vehicles ? What is the detail of the communication from the European Commission ? Lisbob, the expatriate assistant in Portugal, tells you all about this ultimatum launched by Brussels on the ISV tax.
Portuguese tax department loses once again and will have to refund ISV for another imported vehicle which she claimed 21,000 euros tax
It seems that Pandora's box will be hard to close. Indeed, the Portuguese tax has again been condemned to repay part of the ISV of an imported car. This vehicle? A Mercedes GLS 350D of 2018 for which the Portuguese tax claimed 21.004,94 €. This is already the second case the Tax Authority (AT) is losing in this regard this year, and it looks like it will not be the last. Portugal, justifying this tax for environmental reasons, is still subject to Brussels sanctions concerning this tax, which is considered illegal. Is this the end of the ISV tax? Does this concern all imported vehicles? Lisbob, the expatriate assistant in Portugal, tells you all about this new defeat of the Portuguese tax authorities regarding the ISV tax.
Portuguese tax authorities dispute condemnation to refund ISV
The novel against the Portuguese tax authorities and taxpayers importing foreign vehicles is not over! Indeed, the dispute over the collection of the ISV tax on the import of foreign cars is now before the Constitutional Court. The Portuguese State was ordered in September to return the excess ISV tax on the importation of a foreign vehicle. This conviction has finally been challenged by the Portuguese tax authorities who decide to go to the end of their possible remedies in order to annul this decision which opened the way to remedies by many taxpayers who imported foreign vehicles. What are the consequences of this decision? Is this appeal from the Portuguese tax authorities likely to succeed? Lisbob, the expatriate's assistant in Portugal, tells you all about this turnaround on the ISV tax in Portugal.