EU Commission Sues Portugal Over Failure to Implement Consumption Tax Measures
The European Commission has taken the unprecedented step of launching a legal action against Portugal at the European Court of Justice, citing the country’s failure to implement essential measures in the consumption tax sector. The decision was made on Wednesday, according to a statement from the Brussels-based institution.
Portugal’s alleged transgression stems from its failure to fully transpose the EU’s 2020/262 and 2020/1151 directives into its national law. These directives concern the general consumption tax system and the harmonization of taxes on alcohol.
EU member states were required to complete the transposition of these directives by December 31, 2021 and notify the Commission of the exact wording of the national provisions. Portugal, however, has yet to provide the Commission with the necessary information, the Commission claims.
On January 28, 2022, the Commission sent two formal letters to Portugal, followed by the country’s responses on July 15, 2022, which included explanations for the delays. Although Portugal’s authorities acknowledged that some provisions were still outstanding, the Commission deemed the country’s efforts insufficient.
Portugal is the only EU member state that has failed to fully transpose the relevant directives, the Commission noted. As a result, the institution has decided to take the unprecedented step of suing Portugal at the European Court of Justice and requesting the imposition of financial penalties.