Mercedes owner demands refund of VAT paid on importation

A man who imported a Mercedes saloon car in 2007 yesterday filed a judicial protest against the authorities claiming a refund of the VAT he had paid on importation.

The action appears to be the first by a private individual after the European Commission last week suggested that people could ask the courts to decide on a refund of the VAT they paid on the registration of their vehicle since Malta joined the EU in 2004.

The government insisted that the tax was not illegal and accused Labour, which has been arguing that the government should refund the VAT charged over the years, of being irresponsible when it lead people to believe they were somehow eligible for an automatic refund.

Finance Minister Tonio Fenech insisted the government was not in breach of EU laws. The Labour Party and Alternattiva Demokratika said they would institute legal action on behalf of affected people.

Michael Camilleri, the owner of a Mercedez C Class, paid about €2,000 in VAT for the importation of his car, which he drove to Malta from the UK, where he used to live.

He imported the car in September 2007 but did not pay the registration tax until December 2008, only to find out, in January, that the tax regime changed and he could have been spared the VAT.

In his judicial protest, he called on the Finance Minister, the VAT Commissioner and the Malta Transport Authority to refund the VAT he had paid and held them liable in damages.

He claimed that the VAT he had paid was in violation of European law and case law following a judgment delivered by the European Court of Justice.

Lawyer Josè Herrera signed the protest.