- On May 15, 2025, the European Court of Justice ruled in the Tauritus UAB case, confirming that the transaction value method applies to customs valuation even if the final price is determined after importation, as long as the price is based on pre-agreed objective criteria.
- The court emphasized that while a provisional price can be used for customs declarations, importers must submit a simplified declaration when only a provisional price is known, and adjust it once the final price is established.
- This ruling may affect businesses with international supply chains in the EU, particularly regarding transfer pricing and customs valuation, prompting multinational enterprises to monitor court practices, assess local authority interpretations, and evaluate existing customs agreements in light of the decision.
Source EY
- Court Ruling on Customs Value: The Court of Justice of the European Union determined that the customs value of goods, such as those imported by Tauritus UAB, should be calculated using the transaction value method specified in Article 70(1) of the Customs Code, even when provisional prices are declared.
- Case Background: Tauritus UAB imports diesel and jet fuel based on provisional prices linked to market fluctuations. After final prices are established, the company sought adjustments to previously declared customs values, which the Lithuanian customs authorities accepted, but they charged default interest on VAT due to delayed notifications of some price changes.
- Implications of the Ruling: The Court confirmed that the simplified customs declaration procedure applies to Tauritus’s situation and clarified that previous rulings, such as the Hamamatsu Photonics Deutschland judgment, do not change this requirement for determining customs value.
Source Taxlive
See also
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
