In its judgment of 3 March 2021 in the case C-7/20 – VS, the European Court of Justice upheld its previous case law concerning the perspective it has adopted on import VAT in the case of infringements. From the ECJ’s perspective, and in contrast to the concept of import from a customs law perspective, the physical transfer or the place of detection of the infringement is not decisive for the importation and thus for the incurrence of import VAT. Rather, what is decisive is in which state the imported object enters the economic network.
For months, the EU and the United Kingdom (UK) have been negotiating an agreement to regulate their mutual relations after Brexit. After several missed deadlines, the parties finally reached a last minute agreement on 24 December 2020. This agreement is to apply as from 1 January 2021 and regulate, among other things, trade relations between the EU and UK. The previous Withdrawal Agreement remains unaffected. Our latest newsletter summarizes what the trade agreement means for VAT and customs law.
Upon the expiry of the agreed Brexit transition period on 31 December 2020, EU legislation on excise duties will no longer apply in the United Kingdom (UK). It will no longer be possible to dispatch or receive excise goods directly to and from the UK. In future, such transactions will have to comply with customs formalities, as well as with EU and UK excise legislation. In this newsletter you will find out what the UK excise duty rules, applicable as from 1 January 2021, will mean for companies established in the EU.