- The Court of Justice of the European Union delivered a judgment on June 12, 2025, in case C-125/24 (Palmstråle).
- The case involved whether a VAT exemption on re-importation of goods into the EU is valid if customs formalities are not fulfilled.
- A Swedish taxable person transported horses to Norway and returned without customs declaration, leading to a VAT charge.
- The Swedish Supreme Administrative Court referred the case to the Court of Justice for interpretation of the Union Customs Code and VAT Directive.
- The Court of Justice ruled against the strict interpretation of Swedish authorities, emphasizing substantive conditions over formal ones.
- The VAT exemption applies if goods qualify for exemption from import duties, even if formal customs requirements are not met, provided there is no fraud.
Source: ploum.nl
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.
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