Ruling on vehicle sales VAT

CAR-importing member states of the European Union (EU) should not demand that VAT be charged on the cost of pre-registering vehicles, says a European Court of Justice advocate general.

Concerned that this could make imported vehicles more expensive than those manufactured and sold locally, she advised that imported cars be sold with pre-registration taxes included in a price, but net of VAT.

Her ruling focused on VAT problems regarding Denmark car imports, although if approved by the full court this would be an EU-wide precedent.