According to Slovenian legislation, apart from a few exemptions, The Motor Vehicle Tax shall be paid on all the vehicles corresponding to the tariff codes stipulated in the Common Custom Tariff of the European Community, that are placed on the market or registered for the first time in the territory of the Republic of Slovenia. The tax base shall be the selling price of vehicle, The Value Added Tax excluded, with the rates depending on several factors related to the type and characteristic of a vehicle, such as type of vehicle, engine, CO2 emission.
In 2012 Fiscal Balance Act was adopted and it introduced the additional motor vehicle tax. It's rate depends on the engine capacity of a vehicle.
European legislation, according to the article 110 of The treaty on the Functioning of the European Union, prohibit all the Member States from imposing on the products of other Member States any internal taxation of any kind in excess of that imposed directly or indirectly on similar domestic products.
Due to aforementioned Slovenian legislation The Motor Vehicle Tax shall be paid in case of importation of used vehicles from any Member State, as oposed to the used vehicles from the Slovenian market, whom such levy is not being imposed on.
A brief regard on this situation shows us, that the products coming to Slovenia from other Member States are treated differently to those from the Slovenian market, which could mean the infringement of the principle of the free movement of goods within the territory of European Union.
The said problem has a significant impact on the used vehicles market in Slovenia and it also present a potential infringement of the European legislation. That is why it deserve to be taken up and why it will be the focus of the profound explore in my master thesis.