EU refers Greece to court over border duty-free tax violation

The European Commission announced Wednesday that it is taking Greece to the Court of Justice of the European Union for failing to follow EU rules on excise taxes.

According to the Commission, Greece continues to allow duty-free shops at its land borders with Albania, North Macedonia and Turkey to sell goods without charging excise tax. This special tax is an indirect tax levied by the government on certain goods, such as alcohol, tobacco and fuel. That exemption has not been allowed under EU law since 2017.

The EU’s executive body said Greece’s efforts to comply with the rules have been inadequate, leading to its referral to the EU’s top court.

The Commission has also opened separate legal procedures against Greece and seven other EU countries, including Belgium, Spain, the Netherlands, Austria, Poland, Portugal and Romania, for failing to update national laws on payment services. The changes are meant to let non-bank providers, such as fintech and electronic money firms, take part in EU payment systems and offer faster, more competitive instant payments.

The countries have two months to respond before the Commission decides whether to take further action.