Import VAT Deduction Denied for Non-Owners of Goods: European Court of Justice Ruling

The European Court of Justice ruled that the importer cannot deduct import VAT if they do not own the goods and the import costs are not part of their output transactions or economic activities.
The case involved a Slovakian company that imported goods for reconditioning and supplied them to other countries, but the goods belonged to a Swiss customer.
The Slovakian Authorities denied the company’s right to deduct the import VAT.
The ruling is important for toll manufacturing of imported raw materials, as import VAT could become a cost if the toll manufacturer acts as the importer of record without a customs suspensive regime.

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.