after a few months ago the European Commission has urged Portugal to “change its legislation on the taxation of motor vehicles” , a bill is now being discussed in Parliament with a view to complying with the community directive.
When the European Commission (EC) issued a warning to Portugal about the incompatibility of Portuguese legislation with regard to the taxation of imported used cars with that of article 110 of the TFEU (Treaty on the Functioning of the European Union), a period of two months for Portugal to resolve the situation, a period that has already expired.
Now, almost three months after the notice given by the EC, and until now we are aware that "a reasoned opinion on this matter has been sent to the Portuguese authorities" as it had informed it would if no changes occurred, it seems that the Portuguese lawmakers decided to follow the directives.
What changes
THE bill under discussion does not deal with ISV (vehicle tax) paid for imported used but yes about the IUC . That said, imported used vehicles, for the time being, must continue to pay the same ISV values, but in relation to the IUC, they will no longer pay as if they were a new vehicle from the year in which they were imported.Subscribe to our newsletter
Thus, with regard to the IUC, if the proposed law is approved, all imported cars will pay IUC according to the date of first registration (provided it is from the European Union or from a country in the European economic space such as Norway, Iceland and Liechtenstein).
In other words, if an imported car is prior to July 2007 it will pay the IUC according to the “old rules”, which will allow a large reduction in the amount charged. Others benefited by this possible change are classics prior to 1981, which would be exempt from paying IUC.
According to what can be read in the proposed law, if approved, it will enter into force as of July 1, 2019, however, it will only take effect as of January 1, 2020.
the bill
Entitled "Proposal of Law 180/XIII" and available on the website of the Parliament, this can still be changed, but for now we leave you here the proposal that is being discussed in full so that you can get to know it:
Article 11
Amendment to the Single Circulation Tax Code
Articles 2, 10, 18 and 18-A of the IUC Code now have the following wording:
Article 2
[…]
1 - […]:
a) Category A: Light passenger cars and light vehicles of mixed use with a gross weight not exceeding 2500 kg that have been registered, for the first time, in national territory or in a member state of the European Union or the European Economic Area, since 1981 until the date of entry into force of this code;
b) Category B: Passenger cars referred to in subparagraphs a) and d) of paragraph 1 of article 2 of the Tax Code on Vehicles and light vehicles of mixed use with a gross weight not exceeding 2500 kg, whose date of the first registration, in the national territory or in a Member State of the European Union or of the European Economic Area, after the entry into force of this code;
Article 10
[…]
1 - […].
2 — For category B vehicles whose date of first registration in the national territory or in a Member State of the European Union or the European Economic Area is after January 1, 2017, the following additional fees apply:
[…]
3 — In determining the total value of the IUC, the following coefficients must be multiplied to the collection obtained from the tables provided for in the preceding paragraphs, depending on the year of the first registration of the vehicle in national territory or in a Member State of the European Union or of the European Economic Area:
[…]
Article 21
Entry into force and taking effect
1 — This law enters into force on July 1, 2019.
2 — Take effect on January 1, 2020:
The) […]
b) Amendments to articles 2 and 10 of the IUC Code, made by article 11 of this law;