Motor Vehicles Taxation in the European Union – Cooperation or Competition?

This study focuses on registration taxes and regularly paid taxes in conjunction with motor vehicles. It analyses time and performance charging for the use of road infrastructure only to a certain and necessary extent. This study follows the IMRaD structure. The text demonstrates that the level of motor vehicle taxation in individual EU Member States differs not only in the number and type of taxes imposed on motor vehicles, but also in the legal construction of individual structural components. The level of harmonisation in motor vehicle taxation is currently extremely low. European cooperation regarding motor vehicle taxation is limited, and the competition between the EU Member States prevails. The EU rules concerning car taxation are adequate with regard to single market principles. However, the EU rules in this area are not acceptable in terms of economic circumstances. De lege ferenda, several motivational factors should be considered to improve the regulation. Registration taxes on motor vehicles should be abolished entirely. The tax base should be green-based, determined by the amount of CO2 emissions, to follow sustainable and polluter-pays principles. Circular taxes on motor vehicles should remain under the responsibility of each EU Member State, and the EU should refrain from taking steps to harmonise this area of taxation. Nevertheless, the principles of sustainability should be strengthened in national regulations. Taxes on motor vehicles are an ideal example of reflecting environmental elements.