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Tax Authority returns part of IUC to taxpayer with imported car. Process opens door to others – Actuality

A taxpayer from Pombal, who bought an imported car in 2008, eventually got a favorable ruling on the complaint he filed with the Tax Authority (TA) for the amount he was charged with Single Road Tax (IUC), advances the newspaper Público.

The tax authorities will return about 1050 euros, recognizing, according to an order to which the public had access, that has been using an illegal calculation formula. In the present case, this is the IUC applied to a Mini 1300 which, having been imported in 2008, had a first registration issued in Germany in 1996. AT taxed the vehicle as if it were a new car in 2008, although already have 12 years.

The method of calculation applied in this particular situation is the same as that used in many other cases of imported car purchases from 2007. In 2018, the Court of Justice of the European Union in 2018 considered that this was a tax distortion and in 2019 Portuguese parliament corrected the IUC code accordingly. But the overcharged amounts had so far had no return, which is why this case sets a precedent for other similar situations.

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