Ireland: Car tax on rented, leased vehicles

Ireland: Car tax on rented, leased vehicles

The European Commission today announced it is referring Ireland to the Court of Justice of the European Union (CJEU) because the Irish car tax is being applied to rented and leased vehicles in a manner that is not in line with EU rules.

Related content

According to the EC release, Ireland is currently infringing EU law in the manner it applies tax to vehicles that are either rented or leased. Under EU rules, car tax is to levied on residents according to the precise duration that the vehicle is leased in another EU Member State, provided that the duration can be determined (e.g., on the basis of a leasing or rental contract). It is alleged that Ireland is infringing the European Union law by levying the full amount of car tax—even though the amount levied in excess is refunded at a later stage—once the vehicle is registered in another country. 

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.