A breach of customs formalities does not automatically trigger import VAT, and even a customs debt that has already been incurred may subsequently be extinguished. In its judgment of 21 October 2026 (T-383/25), the General Court clarifies the relevance of the actual use of non-Union goods. The decision reaches far beyond the specific case of a sailing boat and is particularly relevant for businesses temporarily bringing goods into the EU for maintenance, repair or processing.

In many industry sectors tools and moulds are provided to (sub-)suppliers free of charge. But does this result in a supply carried out without consideration that is subject to VAT? The General Court has now provided greater clarity and rejected a purely formalistic approach to multi-stage supply chains. This benefits not only car manufacturers but also numerous manufacturing companies. However, tooling is not entirely without risk. The obligation to provide evidence that the manufactured components are used exclusively for the company providing the tool remains.

The following developments have recently taken place internationally: +++ EU plans to extend its anti-VAT fraud instruments +++ Greece postpones mandatory e-invoicing and digital monitoring of the movements of goods +++ Ireland plans e-invoicing and real-time reporting from 2028 +++ Serbia introduces monthly VAT returns when taxable transactions commence +++ Spain confirms its B2B e-invoicing timeline +++ Hungary plans a mandatory eVAT system +++ Cyprus extends its temporary zero rate for certain foods.