ECJ decides Danish Car tax case
In the case of De Danske Bilimporterer (C-98/05) the ECJ has decided that the Danish equivalent of the UK’s Road Fund Licence paid on a new car should not be subject to VAT where the vehicle is registered by the dealer on behalf of the customer. The decision ratifies the UK treatment for sales of new cars but is significant in Denmark where the rate of car registration duty is 180%. Other challenges in similar high taxation regimes are pending and businesses with overseas vehicle fleets should review their arrangements to make sure they take advantage of this decision.
Major Amendments to Chinese Consumption Tax
The Peoples Republic of China (PRC) has made significant changes to Consumption Tax rates in China and further amendments are expected in the near future. Businesses operating in the oil and gas, automotive and luxury goods industries are most likely to be affected by these recent amendments. Businesses will need to review their product
