CJEU – Recent Developments in Direct Taxation 2023

1. Introduction

The compliance of Finnish car taxation rules with EU law has been under review since Finland’s accession to the European Union in 1995. This is no wonder as Finnish car tax rates rank among the highest in the Union. Many individuals have, accordingly decided to import second-hand cars from other Member States in order to benefit from the internal market.

Case C-676/21, A. v. Veronsaajien oikeudenvalvontayksikkö relates to the free movement of goods set forth in Article 110 TFEU. On 2 November 2021, the Supreme Administrative Court of Finland (SAC) made a request for preliminary ruling before the CJEU. A taxpayer called “A” had imported a second-hand car from another EU member state to Finland. The taxpayer requested the Finnish Tax Administration to grant an export refund of the applicable vehicle tax. The Tax Administration refused the export refund of the vehicle tax applied for by A after the sale of his Finnish-registered motor vehicle in another Member State. A filed an appeal against the Tax Administration’s negative decision.

Though car taxation rules have not been harmonised within the Union, the CJEU’s established case law covers many issues concerning taxatio...