The European Commission has decided today to refer Greece to the EU Court of Justice for not amending its car registration and taxation rules. Greece imposes higher registration taxes on certain categories of second-hand vehicles bought in other EU countries compared to similar domestic second-hand vehicles. Moreover, the Greek environmental tax applies solely to imported second-hand vehicles of specific categories, not to domestic vehicles of corresponding categories. The Commission believes Greek legislation is inconsistent with Article 110 TFEU as domestic vehicles face lower taxation than those from other EU countries.
Additionally, Greece prohibits the registration of certain second-hand vehicles from other EU countries without a similar prohibition for domestic vehicles. This restricts the free movement of goods, violating Article 34 and Article 36 TFEU. The Commission sent Greece a formal notice in September 2021, an additional notice in June 2023, and a reasoned opinion in May 2024, urging Greek authorities to align their rules with Union law. The Commission deems the efforts by Greek authorities inadequate, thus referring Greece to the Court of Justice of the European Union.
Background
Since 2020, legislative changes in Greece have led to higher registration taxes on imported second-hand cars compared to the residual tax included in the value of similar domestic second-hand cars, breaching Article 110 TFEU.
Alongside the registration tax on all imported second-hand cars, the imposition of an environmental tax solely on imported second-hand cars of certain categories (Euro 4, Euro 5a, and Euro 5b) and not on domestic cars of corresponding categories constitutes another breach of Article 110 TFEU.
The Greek registration prohibition on second-hand cars (Euro 1, 2, and 3) applies to cars entering the Greek market from other Member States. No similar prohibition exists for corresponding domestic cars. As the registration prohibition applies only to vehicles entering from other Member States, this measure fully restricts such imports, amounting to a restriction under Article 34 TFEU.
More Information
Infringement decisions database
Infringement procedure Greece (INFR(2020)4001)