Poland: Excise duty on exported passenger cars not contrary to EU principles (CJEU judgment)
A CJEU judgment concerning excise duty on exported passenger cars
A CJEU judgment concerning excise duty on exported passenger cars
The Court of Justice of the European Union (CJEU) on 17 May 2023 held (case file C-105/22) that Polish provisions precluding the reimbursement of excise duty on passenger cars exported from Poland (but previously registered in the Poland) are not contrary to EU principles, including the principle of proportionality and the principle that excise duty is a single-stage tax.
The CJEU noted that the Polish excise duty in respect of passenger cars does not take on the characteristics of a tax linked to the duration of the use of such vehicles, but rather that of a tax on consumption of those vehicles, which is implemented via the registration of the passenger cars in Poland. This means that the Polish system of taxation of passenger cars does not obstruct free movement of goods and that Poland is not required to reimburse excise duty once a vehicle temporarily registered in Poland is exported to a different country.
Read a May 2023 report prepared by the KPMG member firm in Poland
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