The value of goods as defined per the Customs Legislation (”Customs Value”) is important for determining the taxable amount for VAT purposes.
Relevant articles in the EU VAT Directive 2006/112/EC
Article 85
In respect of the importation of goods, the taxable amount shall be the value for customs purposes, determined in accordance with the Community provisions in force.
Article 86
1. The taxable amount shall include the following factors, in so far as they are not already included:
(a) taxes, duties, levies and other charges due outside the Member State of importation, and those due by reason of importation, excluding the VAT to be
levied;
(b) incidental expenses, such as commission, packing, transport and insurance costs, incurred up to the first place of destination within the territory of the Member State of importation as well as those resulting from transport to another place of destination within the Community, if that other place is known when the chargeable event occurs.
2. For the purposes of point (b) of paragraph 1, “first place of destination” shall mean the place mentioned on the consignment note or on any other document under which the goods are imported into the Member State of importation. If no such mention is made, the first place of destination shall be deemed to be the place of the first transfer of cargo in the Member State of importation.
ECJ Cases – Decided
The below cases are ”Customs” cases
- C-306/04 (Compaq Computer International Corporation) – Customs value – Laptop computers equipped with operating systems software
- C-263/06 (Carboni e derivati Srl) – Whether the customs authority may take into consideration the price indicated in a sale of goods effected prior to that on the basis of which the customs declaration was made
- C-116/12 (Christodoulou and Others) – Customs value of concentrated orange juice – costs of mixing the components
- C-430/14 (Valsts ieņēmumu dienests) – Definition of ‘related persons’ for the purposes of determining the customs value — Kinship relationship between the buyer, a natural person, and the director of the company which sold the goods
- C-173/15 (GE Healthcare GmbH) – Determination of the customs value — Royalties or licence fees in respect of the goods being valued
- C-291/15 (EURO 2004. Hungary Kft.) – Customs value — Transaction value — Price actually paid — Doubts based on the veracity of the declared price — Declared price lower than the price paid in respect of other transactions relating to similar goods
- C-1/18 (Orgibalt Riga) – Customs value; Similar goods; Price adjustments; Discounts
- C-76/19 (Curtis Balkan) – Customs value includes part of the royalties for the supply of know-how for the manufacture of finished products
- C-775/19 (5th Avenue Products Trading GmbH) – Exclusivity payment must be included in the customs value of the imported goods
- C-509/19 (BMW) – Value of ‘free’ software to be added to the Customs Value of Imported electronic products
- C-75/20 (Lifosa) – Calculation of Customs Value When Transport Costs Exceeds Product Value
