This is what happened in the ECJ/General Court (VAT) in June 2025 – 2 Decisions, 1 Order, 1 AG Opinion, 1 Question

Highlights in June 2025

2 cases Decided/ 1 Order
1 AG Opinions released
1 Question has been released
4 new cases, no details yet

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Your database of ECJ Cases with the link to the relevant article in the EU VAT Directive 2006/112/EC

Judgment

ECJ VAT C-125/24 (Palmstråle) – Judgment – VAT exemptions for re-imported goods, even if customs rules are not followed, unless there’s an attempt to cheat
- Case Background: The case involves AA, who re-imported horses into the EU after competitions in Norway without declaring them to customs, leading Swedish authorities to impose VAT due to unmet exemption requirements.
- Court’s Decision: The ECJ ruled that failing to comply with customs formalities does not automatically disqualify entitlement to VAT exemption for re-imported goods unless there is an intent to evade customs regulations.
- Implications: The ruling clarifies that VAT exemptions for re-importation can still apply despite certain customs formalities being unmet, as long as the trader acts in good faith without any intention to manipulate the system.
ECJ VAT C-785/23 (Bulgarian posts) – Judgment – Specific postal services under individual contracts do not qualify for VAT exemption
- Case Background: The dispute involves Bulgarian Posts and the tax administration regarding the VAT exemption status of certain postal services provided under individual contracts, questioning their classification as “public postal services” under EU law.
- Court’s Decision: The Court ruled that postal services offered under separate contracts are not eligible for VAT exemption if they are not universally available to all consumers and provide conditions more favorable than those set by the national regulatory authority.
- Implications for Universal Service Providers: The ruling clarifies that universal service providers must comply with regulatory standards and ensure services are accessible to the general public, preventing selective treatment that could undermine the objectives of universal postal service and fairness in VAT applications.

Order

ECJ VAT C-501/24 (Klinka-Geo Trans) – Order – Tax Authorities Can Deny VAT Deductions Without Proving Fraud Knowledge by Taxpayer
- Background of the Case: Klinka-Geo Trans Földmunkavégző Ipari, a Hungarian company, challenged the Hungarian tax authorities’ refusal to allow input VAT deductions on invoices for various services, citing issues with the actual provision of those services.
- Court’s Findings: The CJEU ruled that tax authorities can refuse VAT deductions if it is determined that the underlying economic transaction did not occur, emphasizing the necessity for the actual provision of services or goods to validate VAT claims.
- Principle of Primacy of EU Law: The Court affirmed that national courts must set aside any conflicting national legal guidelines, even from higher courts, thus reinforcing the supremacy of EU law in VAT matters and rejecting certain questions as inadmissible.

AG Opinion

ECJ C-433/24 (Galerie Karsten Greve) – AG Opinion – AG supports VAT margin scheme for art via legal entities
- Case Background: The case centers on Galerie Karsten Greve (GKG), which purchased paintings from Studio Rubin Gideon (SRG), a legal entity associated with artist Gideon Rubin. GKG used a VAT margin scheme for resale, but tax authorities disputed this, claiming the paintings were not supplied by their creator.
- Key Questions: The primary issues are whether a legal person can be deemed the “creator” of art under Article 316(1)(b) of the VAT Directive and the criteria that should apply in such determinations.
- Advocate General’s Interpretation: The Advocate General suggests that a legal person can qualify as a creator if the artist retains significant decision-making authority and benefits financially from the sale, advocating for the margin scheme’s application to artworks supplied by legal entities under these conditions.

Questions

General Court Customs T-224/25 (VÁM4ALL) – Questions -Dispute Over Customs Value and VAT Compliance in EU Import Case Documentation Requirements in EU Import Case
- The case involves VÁM4ALL Kft., challenging a Hungarian customs authority decision on customs value and EU duty imposition, questioning the legality of disregarding transaction value due to lack of payment proof.
- Key issues include whether indirect customs representatives must provide comprehensive transaction documentation, and if customs authorities can rely solely on national databases for customs value determination.
- The appellant argues against the customs authority’s methods, including using a 45-day data range and weight-based pricing, while the respondent defends these practices as compliant with EU regulations.

ECJ VAT Case, details not yet known

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