- Chargeable Event and VAT Deduction: The document discusses the chargeable event for the importation of goods, which arises when goods are released for free circulation, and examines the complexities surrounding the right to deduct import VAT. It highlights various scenarios, including the implications for lessees and breeders importing goods on behalf of clients, as well as the impact of customs debt on VAT liability.
- Legal Framework and Case Law: The analysis includes a review of the Dutch legal provisions under the Turnover Tax Act 1968, relevant case law from the Court of Justice, and guidelines from the VAT Committee. It emphasizes that the right to deduct import VAT is contingent upon having ownership rights over the goods and a direct link to economic activity, with specific cases illustrating these principles.
- Implications of EU Customs Reform: The document concludes by addressing proposed reforms in EU customs law, particularly the definition of “importer” and the responsibilities of indirect customs representatives. It raises concerns about potential bottlenecks in VAT deduction rights for non-EU parties and suggests that further clarification is needed to ensure that legitimate expectations regarding VAT deductions are upheld in light of these reforms.
Source inview.nl
See also
- DSV Road Case C-187/14: This case examined whether a carrier could deduct import VAT on goods that were unlawfully removed from a special transit procedure. The Court ruled that the right to deduct VAT exists only if the imported goods are used for the purposes of taxed transactions by a taxable person.
- Weindel Case C-621/19: In this case, Weindel declared goods for a client outside the EU and sought to deduct the VAT due on the imported goods. The Court ruled that Weindel was not entitled to deduct VAT because the goods had to be disposed of as the owner, and the ‘import costs’ needed to be included in the price of the goods or services supplied in the course of economic activity.
- Nickel Theft Judgment C-490/06: This judgment dealt with irregular importation and evaluated the definition of ‘intended’ in the context of import VAT deduction. The Court distinguished between regular and irregular importation, determining who qualifies as a consignee entitled to deduct import VAT.
- Wallenborn C-571/15
- Horvath C-50/80
- Einberger C-294/82
- Eurogate C-226/14
- C-368/21
- C-7/20
- C-489/20
- C-714/20
- C-79/12
