ECJ Case: Advocate general opinion on VAT exemption for re-imported goods in Sweden
The Advocate General of the European Court of Justice (ECJ) issued an opinion in Case C-125/24, involving Sweden’s application of VAT rules to re-imported goods.
The case concerns a taxpayer who owned horses used for competitive purposes. The horses were exported from the EU to Norway, which lies outside the EU customs territory, and later returned to the EU through a border crossing without a formal customs declaration. Although the Swedish Customs Authority applied import VAT, it did not establish a customs debt.
In response to a request for a preliminary ruling, the Advocate General provided the following interpretation:
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According to Article 143(1)(e) of EU VAT Directive 2006/112/EC, VAT is not charged on goods brought back into the EU, provided that the main eligibility conditions for the exemption are fulfilled.
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The procedural failure to comply with Article 86(6) of the EU Customs Code does not affect eligibility for VAT exemption under the VAT Directive.
This opinion clarifies that the import VAT exemption can apply independently of certain customs procedure requirements.
Source: europa.eu
