Customs imposed import VAT on a company due to a lack of compliance with the rules (illegal entry) in connection with the import of oil. The company operated a storage business subject to value added tax. The question in the case was whether the oil products that had been imported could be considered used in the company’s operations in such a way that the company would carry out work on them. It was undisputed that the company did not own the oil products at the time of the imports.
The Court of Appeal considered that the circumstances in the case differed from the circumstances in SRN 2011-03-03, dnr 35-08/I (see above). There was nothing in the agreement between the owner of the oil and the company that indicated that the measures taken during storage were intended to change or improve the properties of the oil. The company could therefore not be considered to dispose of or influence the goods in the same way as in the advance notice. Rather, the purpose of the measures appeared to be to care for the products, maintain their quality and ensure that they did not deteriorate during storage.
The imports were therefore not considered to have been fundamental to the company’s storage operations or a prerequisite that the operations could be conducted in a similar way as in the advance notice. According to the Court of Appeal’s assessment, the imported oil could therefore not be considered used in the company’s operations. Since the oil was not imported for the company’s storage operations, there was no right to a deduction for input VAT (KRNS 2015-11-11, case no. 7678-14). The Tax Agency agrees with the Court of Appeal’s assessment.
Source: skatteverket.se
