Advocate General Brkan has concluded that when a boat is transported from Switzerland to Germany for repairs, it constitutes an import, and import VAT is payable. This holds true even if the boat is subsequently re-exported without being used for transport in Germany [1] [2].
The case involves a Swiss resident (“Segelbootwartung”) who brought a Swiss-registered sailboat into Germany on a trailer for repairs at a German company. German customs subsequently levied import duties and import VAT, which Segelbootwartung disputed. The German court referred the matter for a preliminary ruling [1] [2].
Brkan’s opinion states that the physical introduction of goods from a third country into an EU Member State triggers import VAT, unless the goods are placed under a special customs procedure, such as inward processing [1] [3]. The re-export of the boat or the fact that it wasn’t used for its primary purpose (transport) in the EU does not, by itself, negate these charges [1].
However, an exception exists if customs authorities grant a retroactive inward processing authorization under Article 211(2) of the Union Customs Code (UCC) [1] [2] [3]. In such a scenario, the maintenance and repair work would be considered “use” within the meaning of Article 124(1)(k) of the UCC, and the customs debt would not be extinguished [1] [2] [3]. Brkan views the maintenance and repair work itself as a form of “use” under Article 124(1)(k) of the UCC [2] [3].
Sources
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