On January 18, 2024, the ECJ issued its decision in the case C-791/22 (Hauptzollamt Braunschweig).
Facts
- G. A. purchased 43,760 cigarettes in Poland with Ukrainian and Belarusian tax stamps, and then took them to Germany where he sold them.
- The German customs office found that G. A. was liable for customs debt and issued a VAT assessment.
- G. A. objected and brought the case to the Hamburg Finance Court, which questioned whether the import VAT arose in Germany.
- The court referred the question to the European Court of Justice, asking if it was a violation of Directive 2006/112 for a Member State regulation to apply customs code provisions to import VAT.
Question
Is it a violation of Directive 2006/112, specifically Articles 30 and 60, for a Member State regulation to apply Article 215(4) of the Customs Code to import VAT with necessary changes?
Argumentation ECJ
- The VAT Directive defines importation and VAT events, highlighting the comparable nature of import VAT and customs duties.
- While Article 71(1). 2 allows Member States to link these events, it doesn’t establish a general connection between the Directive and the Customs Code.
- The Court emphasizes the principle of fiscal territoriality, asserting that import VAT revenue aligns with the Member State of final consumption.
- Rejecting the application of Customs Code provisions to import VAT determination ensures consistency with the fiscal territoriality principle in VAT matters.
- The decision underscores the importance of determining the place of importation based on Directive 2006/112, avoiding conflicting applications that could undermine VAT territorial principles and cross-border cooperation.
Decision
- Articles 30(1), 60, and 71(1).2 of Council Directive 2006/112/EC, which outlines the common system of value-added tax, clash with national laws that invoke Article 215(4) of Council Regulation (EEC) No. 2913/92.
- This Regulation, establishing the Community Customs Code, is modified by Regulation (EC) No. 2700/2000.
- According to the Court, the conflict arises concerning the application of Article 215(4) to import VAT for determining its place of origin.
- In simpler terms, the Court finds inconsistencies between EU VAT rules and how national laws adopt Customs Code provisions, specifically impacting the assessment of where import VAT originates.
See also
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
