Ferrari owner to get €30,000 in tax refund from Transport Malta

Transport Malta has been ordered to refund €30,448 in registration tax and VAT to Stephen Grech, after a court found the authority in breach of the EU Treaty concerning the free movements of goods within the European Union.

In November 2008 Grech purchased a Ferrari 328 GTB from the United Kingdom. The classic 1980s vehicle cost him around £26,000, paid in the UK. But upon arriving in Malta, he was faced with a hefty €30,500 bill covering registration tax and VAT.

Grech paid the amounts 'under protest' arguing that these taxes had already been paid in the UK as the car was a used import.

The owner insisted that the amounts claimed by local authorities were based on an incorrect interpretation of Maltese and European directives. This resulted in him being taxed twice on VAT and registration, and taxed on freight and insurance and other hidden charges. Subsequently, Grech sued Transport Malta for the amounts paid.

The first hall of the civil court, presided by Mr Justice Joseph Zammit McKeon, held that registration tax and VAT on the Ferrari had already been paid in an EU member state. Furthermore, no member state could impose internal taxation to protect its domestic market. The court ordered that Grech is fully reimbursed the €30,500 together with legal expenses.