The ECJ released the facts & questions in the case C-125/24 (Palmstråle).
Context: Request for a preliminary ruling under Article 267 TFEU concerning the interpretation of Article 143(1)(e) of Directive 2006/112/EC on the common system of value added tax (VAT Directive) and Articles 86(6) and 203 of Regulation (EU) No 952/2013 laying down the Union Customs Code (Union Customs Code)
Articles in the EU VAT Directive
Article 143 (1)(e) of the EU VAT Directive 2006/112/EC
1. Member States shall exempt the following transactions:
(e) the reimportation, by the person who exported them, of goods in the state in which they were exported, where those goods are exempt from customs duties;
Facts
The applicant is AA and the defendant is the general representative of the Swedish Customs Authority. AA owns horses that are used for competitions. For this purpose she exported two horses to Norway, and then brought them back to Sweden after the competition. The horses were not presented as imported goods at the border crossing into Sweden, and thus back into the European Union. AA was stopped during a roadside check in Sweden and customs decided to impose a VAT assessment. AA will appeal against this decision.
Consideration:
It is mandatory to pay VAT on the import of goods from a third country into the Union. Pursuant to Article 143(1)(e) of Directive 2006/112, exemptions may be granted for the re-importation of goods. Article 203 of Regulation 952/2013 sets procedural conditions for this, such as declaring the goods intended for free circulation and submitting a request for exemption. AA had failed to declare the goods in breach of Article 139(1). This has created a customs debt under Article 79. It is not clear to the referring court whether both the substantive and formal conditions of Article 203 must be met in order to grant exemption from import duties where a customs debt has been incurred.
Questions
Must Article 143(1)(e) of the VAT Directive and Article 86(6) and Article 203 of the Customs Code be interpreted as meaning that both the substantive and formal conditions of Article 203 of the Customs Code must be met satisfied in order to be able to grant exemption from import duties – and therefore exemption from VAT – upon re-importation when a customs debt within the meaning of Article 79 of the Customs Code has been incurred due to failure to comply with the presentation obligation of Article 139(1) of the Customs Code?
Source
Reference to other ECJ Cases
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