Ireland has been referred to the Court of Justice of the European Union (CJEU) for an alleged infringement of EU law which deals with how Ireland taxes rented and leased cars.

Under EU law, car tax should be levied on Irish residents based on the duration that the vehicle is leased in another Member State, provided that the duration can be determined.

According to the European Commission, Ireland infringed EU law by applying the full amount of car tax once the vehicle is registered in another country and this creates an obstacle to the freedom to provide services for leasing and rental companies in other Member States who wish to provide services to Irish residents.

Further information can be found on the European Commission website.