In the Weindel Logistik judgment, the Court of Justice of the European Union had to determine whether the right to deduct import VAT is conditional on the fact that the importer of the goods is the owner of the imported goods.
By nature, European companies (including French ones) which carry out custom work or packaging for non-European companies incur a risk in terms of VAT if they take charge of the importation of goods.
Indeed, these packaging companies or custom work never becoming owners of their customers’ goods, they cannot deduct the VAT paid on importation. In the event of an inspection, these companies may be denied the right to deduct import VAT and apply penalties.
Source: mathez-formation.fr
