Netherlands Allowed to Levy Tax on Belgian Cars
THE HAGUE, 06/09/13 - The Netherlands is allowed to levy registration tax (BPM levy) on a car registered in Belgium if the vehicle is used regularly in the Netherlands, the Solicitor-General advised the European Court of Justice Thursday.
The case concerns a Belgian woman working in the Netherlands. She loves both in the Netherlands, where she has a house, but also in Belgium, where she rents an apartment. The woman uses a car registered in Belgium and pays tax on it in Belgium. But she also received a bill from the Dutch tax service for a BPM levy of some 17,000 euros.
The most important advisor of the court has now stated that the Netherlands can levy this tax, because it is based on the use of the road network. But then it must be possible to demonstrate that regular usage is involved. This is his advice to the court, but the court in fact generally adopts such advice in its verdict.