Clearing the road across borders

Citizens and companies are legally entitled under European law to purchase a vehicle anywhere in the Union and register it in their home country. But many are deterred because they fear they will have to wade through a mound of paper work and be hit with unexpected extra costs. A new Commission communication is coming to their aid. It sets out in clear terms existing rights and obligations for Member States and car owners when registering motor vehicles which originate in another EU country. The information covers the registration procedures involved, value added tax payments and use and transfer of number plates.

The legal situation is clear. One of the benefits of the single market is that motor vehicles may be bought in one country and registered in another. If they meet the necessary standards and have the correct documentation, no further formalities are required.

However, some authorities insist on technical tests, which may have already been carried out elsewhere, or stipulate that changes have to be made to the vehicle even though it already has a European type approval certificate.

As a result, private citizens and companies are making more and more complaints about the difficulties they meet and costs they incur when looking to register a vehicle in another Member State.

Currently, 20% of the legal cases the European Commission has brought against Member States over alleged violations of the principle of the free movement of goods involve the registration of motor vehicles.

The communication gives an up-to-date overview of the law that applies when a vehicle is either bought or registered in one Member State and then moved to another. It is designed to ensure that national authorities implement the legislation correctly and do not create unnecessary obstacles for vehicle owners.

The different national systems of type-approval which previously existed have been replaced by the EU whole vehicle type-approval. This has applied to most passenger cars since January 1998 and motorcycles from June 2003. The EC certificate of conformity, which manufacturers provide, confirms that the vehicles meet all the relevant European standards. It entitles them to be sold, registered or to enter into service without any further formalities, making registration faster and easier.

Further legislation is currently being processed by EU governments and the European Parliament. Once approved, commercial vehicles, such as buses, coaches, vans and trucks, will be subject to the same system

No matter where car owners first purchase a new EU type-approved vehicle, they can register it in their home country simply by using the European certificate of conformity. According to existing legislation, a vehicle is new if it is used within six months from the date of its first entry into service or has less than 6 000 kilometres on the clock.

If an owner has already registered a vehicle in one Member State and then moves to another, the authorities in the new country of residence may only request certain documents. These include a copy of the previous registration certificate, proof of payment of VAT, an insurance certificate and, in certain situations, a roadworthiness certificate.

The communication contains details of the VAT requirements that apply to professional dealers and private individuals and to the status of number plates when transferring a vehicle to another EU country.

In the next few months, the Commission will publish a practical citizen’s guide to car registration in the European Union. This is designed to help people who either buy a vehicle in another EU country or move to a different Member State and need to register their vehicle.

Hans Ingels