The European Commission has formally requested Ireland and Spain to change the way in which they tax leased or rented vehicles from another Member State, as well as company cars in the case of Spain, so as to ensure their rules comply with EU legislation.
According to EU rules, a Member State can only levy a registration tax on a leased or rented vehicle from another Member State in proportion to the use in its own territory. This means that a Member State may only levy a full registration tax on a leased or rented vehicle from another Member State if it is used or intended to be used on a permanent basis.
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