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.
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 authorities sentenced to refund part of the ISV tax for an imported car
Portugal's tax and customs authority (TA) has been ordered to return part of the ISV, the import tax on vehicles, to a taxpayer who had imported a car from Germany. According to the court's decision, the calculation of the tax does not take into account the depreciation of the vehicle and is therefore discriminatory and illegal. This highly criticized tax can sometimes reach crazy sums, much higher than the amount of the vehicle. In addition, Brussels has already fined Portugal for this tax which does not meet the European criteria for free movement of goods and people. Lisbob, the expatriate assistant in Portugal, tells you all about this court decision that may mark the end of the ISV tax in its current form.