ECJ Case: Proposed decision regarding the place of import of a vehicle violating customs
In a preliminary judgement in Case No. C-368/21, the European Court of Justice (ECJ) clarified the import VAT regulations for automobiles brought into the EU in contravention of customs laws.
Background
The taxpayer acquired and registered an automobile outside of the EU in Georgia while residing inside the EU in Germany. Without informing the German customs office, he drove the car back to Germany via Turkey, Bulgaria, Serbia, Hungary, and Austria. Since the car was illegally brought into the EU, the customs office imposed import VAT on it. The European Court of Justice had to decide whether the German customs office had the right to determine the import VAT amount.
Resolution
According to the ECJ, under EU Directive EU 2006/112/EC on the shared system of VAT, the place of importation of a vehicle with a non-EU registration that is brought into the EU against customs regulations is the EU nation where the offender resides and uses it.
Source: europa. eu
