en 
This decision comes after the country was forced to correct the ISV calculation for imported second-hand vehicles, but irregularities still persist.
According to Pplware, ISV is a registration tax that is levied on the acquisition of motor vehicles and is paid when the vehicle is registered in the country, whether it is new or used.
The recent controversy involved a citizen who, in 2021, sought to register a plug-in hybrid car with German registration dated 2018. The Portuguese Customs Authority, at the time, insisted on applying the full tax rate on the imported vehicle. However, the European Court of Justice ruled in favour of the citizen, considering that Portugal was violating Community law by improperly calculating the ISV on used vehicles registered in other Member States.
The court's decision highlighted that “Member States may not impose new taxes or introduce changes to existing taxes that have the purpose or effect of discouraging the sale of imported products to the benefit of the sale of similar products available on the national market”. This prohibition applies especially to products introduced on the national market before taxes or modifications came into force.
The ISV, which replaced the old Car Tax in 2007, is a registration tax applied once, being paid when a vehicle is registered for the first time in Portugal.
This episode highlights the ongoing challenges in fairly applying taxes on imported vehicles, with the court reinforcing the need for compliance with European Union laws and regulations in this matter.
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I guess nobody should expect this to be rectified. The only way would be for the EU to hold back payments to Portugal. However, this never happens to "left leaning" countries that - on top of that - always vote with a "left leaning" EU.
By Tom from Lisbon on 08 Jan 2024, 07:33
A class action lawsuit is needed here.
Any legal expert want to take up the case and make a small fortune retrieving these illegal taxes?
By Quentin Ferreira from Lisbon on 08 Jan 2024, 11:21
According to the EU’s Competition Commissioner Mario Monti:
“More competition in car distribution leads to lower prices. By finally tearing down remaining obstacles to cross-border vehicle purchases, consumers will make use of the full potential of the single market for car purchases.”
The above quote referred to new EU laws effective October 2003 that would make car sales more competitive throughout member nations.
Even before then, no dealers could be prevented from supplying cars to consumers from abroad, allowing them to make cross-border purchases.
The Commission’s twice-yearly car price report consistently revealed major differences in car prices between EU Member States. A study published for the Commission concluded that the differences couldn’t be totally explained by differences in tax levels.
So, why can’t I buy a car in Spain and register it in Portugal?
Theoretically, I should be able to …
But it just doesn’t work that way.
I checked the market for second-hand cars in Portugal online. I found one in Spain that matches what I’m looking for, Virtually the same car – make, model, mileage, year, condition, options, etc. – costs twice the price in Portugal than Spain. So, I send the dealer an email from Portugal saying I want to buy the car. Included as attachments are copies of my passport, NIE, deed to my house in Spain, utility bills, and my Portuguese residency.
Yet, assuming I could buy a car and have it insured in Spain, that doesn’t account for all I must do to register the car in Portugal.
First, I must have the car inspected by an authorized Portuguese vehicle inspection center. Cost: about €75. Second, I need to go to a customs agency and explain – perhaps in Portuguese – that I want to regist
By Bruce Joffe from Alentejo on 08 Jan 2024, 12:04
It's greed and theft, pure and simple. The left wants everyone equally poor. Except some animals. Those are more equal than others....!
By Hart from Lisbon on 08 Jan 2024, 12:54
The ISV is purely daylight robbery, there's no other word for that!
By Adelino from UK on 09 Jan 2024, 09:06
Welcome to Portugal! The system is so corrupt, the ordinary citizen cannot do anything against, the example is for a fee of 1000 euro the IMT employee will register the car in 2 weeks deducting every benefit possible, If you try to register the car in the normal way it would take 1 year if successful. Also, imported cars pay more IUC then national ones, same car different taxes....I tried but you cannot do anything when everyone is corrupted
By Roberto from Lisbon on 09 Jan 2024, 09:39
I wish someone would look into the Irish position on importing a vehicle from another EU Country and the amount of tax that is charged.
By Michael McLoughlin from Other on 09 Jan 2024, 09:49
Why aren't these tax cuts demanded before elections … So people live happier, latest cars, and spend that extra money within the country and increase the quality of living.
By Malcolm from Lisbon on 09 Jan 2024, 13:22
The problem is that if , hypothetically speaking, the AT collects €50m a year and has to pay a fraction of that in fines to Brussels, I'd say that the problem is not going away. Hot water.? More like a nice jacuzzi
By Jorge Costa from Lisbon on 10 Jan 2024, 12:11
Portugal has ludicrous taxes on cars, and especially used cars. They have manipulated and skirted EU rules for years as they siphon off hard earned money from their constituents. The government makes so much money from this cash grab that they prefer to pay fines instead of obeying EU laws. This next time around, fines should be incremented to the level that would force the government to think twice. They really should be ashamed of themselves.
By Paul from Algarve on 10 Jan 2024, 14:20
Hi, I purchased a modern classic Jaguar ( 1995 ) from Holland 2 years ago which was originally ordered & purchased new in that country.
So the car already complied with the requirements of the E.U. also being Left Hand Drive and now in immaculate condition.
So one would think this would be a simple and straightforward import, how wrong I was and after all the paperwork ( 6 months ) I was charged €13,500 in import taxes.
This is hardly a United State of Europe with borderless markets we hear about... my car could be imported anywhere within the E.U. at a fraction of the cost that Portugal had imposed.
It's a sad reflection that Portgal has such a dismal Classic Car scene with all the restrictions the Government impose, O.K. these older car have higher emissions but when you think my car has covered under 1,000 km in 2 years it's hardy having an impact on the environment.
And all countries with a active car scene also have a vibrant service industry to keep these cars on the road with body & paint shops, upholsterers and mechanics.
And when I see some of the wrecks on the road which must be obvious to anyone else... to me it's simple logic to think most of these dodgy cars would disappear over time if the import duties were fairer.
By Ken Bradley from Algarve on 15 Feb 2024, 10:35
The fine has to be higher than the benefit of ignoring the regulations on free movement of goods within the EU. That should be pretty obvious. Yet, the fines are a fraction of what the Portuguese state make from screwing people over. As long as it's beneficial to break the rules, why would they stop (morals are obviously not an issue)? The fine should be, as a bare minimum, what they make from the illegal import taxes times two. It should hurt, badly.
By Charlotte from Algarve on 19 May 2024, 19:07
Portugal are playing a game and the EU are the jokers.
Can’t the EU see that………threaten them yes for years, fine them great 500,000 euros .
They make 5 million so who is the laughing stock?
By Tony Coe from Beiras on 20 May 2024, 16:54
I brought my 1999 SLK to Portugal 3 years ago, went through the whole process including the online calculation system, went for the test only for them to say that my emmissions were double what was stated in the vehicle's documents. I pad over 7k for a car that was over 20 years old. Class action, is the only way, and the EU should force Portugal to repay this illegal money, which is in direct contravention to the free movement of people and their goods within the EU!
By John from Madeira on 12 Aug 2024, 18:39