The case between R.T., a German resident, and a Finance Court in Hamburg, Germany, concerns the dispute over where the customs duties and import VAT are due when a vehicle is imported from a third country, passes through several EU countries, and reaches its final destination. The case deals with which EU country is the importing country for a vehicle when the owner violates customs laws, and the vehicle is used for the first time in one EU country while it is later constantly used in another EU country.
Determining the place of importation is crucial for all taxable persons who either base their business activities on imports or need to import vehicles for their business needs. In addition, the ECJ ruling reaffirms that while customs duties and VAT are similar, VAT is ultimately due in the EU, where the goods, in this case, the vehicle, are intended for actual, permanent, or final use. The case depicts issues in cross-border transactions, especially those involving non-EU goods or vehicles imported into the EU market. Moreover, the ruling highlights the decisive role of the vehicle’s owner’s residency in determining VAT obligations and ensuring that the import VAT is levied in the EU country where the vehicle is used.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
