Comments on ECJ C-405/24: Failure to grant VAT exemption on small consignments of a non-commercial character in violation of EU law

EU Law Violation: The Court of Justice of the European Union ruled that Poland’s failure to apply a VAT exemption for small consignments of a non-commercial nature from third countries is contrary to EU law, particularly for shipments between private individuals in different Member States.
Request for Ruling: L. s.c., a company specializing in dispatch and customs clearance, sought clarification from Polish tax authorities regarding the VAT exemption for non-commercial consignments sent to recipients in other Member States, which the authorities denied.
Interpretation of VAT Exemption: The Court emphasized that the VAT exemption should apply regardless of the recipient’s location, whether in Poland or another Member State, based on a comprehensive interpretation of relevant EU provisions.

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VAT exemption for the import of small consignments: even if the recipient lives in another EU Member State

The VAT exemption for the import of small consignments applies even if the recipient resides in a different EU Member State, allowing for tax-free importation of low-value goods.
This exemption facilitates cross-border e-commerce by simplifying the process for consumers and businesses receiving small packages from other EU countries, promoting trade and reducing administrative burdens.
However, specific thresholds and conditions may apply, requiring recipients to be aware of their local regulations and potential obligations when receiving exempted consignments.