The Constitutional Court Judgments nos. 1013/2025 and 1046/2025 have consolidated a decisive understanding: the Tax Authority may not charge Single Circulation Tax (Imposto Único de Circulação – “IUC”) to the former registered holder of a vehicle where that person is no longer the actual owner at the time of the taxable event, under penalty of infringing the constitutional principles of equality, ability to pay and equivalence, as enshrined in Articles 2, 13, 18 and 103 of the Portuguese Constitution.
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