European Union – Taxation. The Court of Justice of the European Union ruled that art 110 of the Treaty on the Functioning of the European Union did not preclude a member state from introducing a tax levied on imported second-hand vehicles at the time of their first registration in that member state and on vehicles already registered in that member state on their first transfer of the ownership. However, it precluded exemption from that tax of vehicles already registered and for which a tax previously found to be incompatible with EU law had been paid and not repaid.