Reference is made to the ruling issued by the European Court of Justice about Malta’s Registration and Licensing taxation system, which was amended in 2009, for used motor vehicles imported from EU Countries. Amendments were enacted to the ACT (Annual Circulation Tax) last May 2023 and entered into force on 1st January 2024.
The court case was filed before the amendments were passed and the amendments have not been considered by the ECJ in its judgment. As from the 1st January 2024, Transport Malta introduced the previous registration tax and annual circulation licence fees for all used passenger vehicles and motorcycles which have been registered in another EU member state (excluding the United Kingdom but including Northern Ireland) before 2009 and imported into Malta after the 1st January 2024.
The new rules which came into force, ONLY apply to vehicles belonging to EU citizens resident in Malta (excluding vehicles imported from the UK by Maltese residents) that were imported after 2008 and registered as Used Passenger vehicle. This includes motorcycles imported after 1 January 2009 which have been registered in another EU Country including Northern Ireland before 2009, with the intention to be registered in Malta. These now have the option to decide between which registration tax and annual circulation licensing regime to be registered and licensed under.
Owners of used passenger vehicles and motorcycles which were registered in another EU member state (including Northern Ireland and excluding UK before 2009) and were imported and registered in Malta after the 1 January 2009, currently under the post 2009 ACT regime, will have the option to re-assign their vehicle under the old regime (both in terms of registration tax and the annual circulation licence fees).
The Government is confident the issues mentioned in the judgement have been adequately addressed.
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