Irregular introduction into the EU: import VAT becomes due in the Member State of final destination
It was discovered that consignments had not been appropriately presented to customs in Germany before being transported to Greece. The German customs authorities therefore concluded that the goods had been brought into the customs territory of the EU in an irregular manner and thus considered that customs duties and import VAT became due in Germany. The breaches of the customs regulation on German territory are however not, in themselves, sufficient to consider that the goods in question have entered the Union's economic circuit in Germany. In those circumstances, it must be noted that the goods entered the Union's economic circuit in the Member State of their final destination and that, consequently, the import VAT on those goods became due in that Member State. (10/07/2019, C 26/18, Federal Express Corporation Deutsche Niederlassung).
Two-tier VAT registration system introduced
Irish tax Authorities have developed a two-tier VAT registration system whereby a foreign business can apply for a ‘domestic-only’ registration or an ‘intra-EU’ registration. If a business registers for domestic-only purposes and subsequently wishes to engage in intra-EU trade, it may then submit an application for an intra-EU registration. This change came into effect on 17 June 2019. All existing VAT registered customers were deemed to be intra-EU VAT registered.