Ireland: Car tax on rented, leased vehicles | KPMG Global
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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.


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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. 

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