ECJ Case: Rules on German Import VAT Case (C-791/22)
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The European Court of Justice (ECJ) issued a judgment for Case No. C-791/22, addressing German import VAT rules for determining the place where VAT is incurred. The case involved a Poland-based company that transported cigarettes to a German buyer without informing customs authorities. The German Principal Customs Office asserted that the import VAT occurred in Germany, subsequently issuing a tax notice.
The ECJ, upon a request for a preliminary ruling, delivered the following key points:
Incompatibility with EU Directive 2006/112/EC:
The national customs legislation was deemed incompatible with the EU Directive on the common system of VAT.
The determination of the place of importation must align with the provisions of the EU VAT Directive.
Limitation of National Customs Legislation:
The national customs legislation only addressed the time of the chargeable event, not the place of importation.
Revenue Allocation for Import VAT:
Import VAT revenue was established to belong to the EU member where financial consumption occurred.