On 21 October 2026, the EU General Court ruled in Case T-383/25 that bringing a means of transport into the EU without clearing customs does not always lead to import VAT or a lasting customs debt. The Advocate General's opinion of 3 June 2026 had pointed the other way.
The case
A man domiciled in Switzerland drove into Germany with a Swiss-registered sailing boat on a trailer, without clearing customs. He told customs that he was on his way to a German company for maintenance and repair work. Customs charged duties and import VAT. After the work, he took the boat back to Switzerland.
Import VAT
A breach of customs rules creates a presumption that goods have entered the EU's economic network. The person concerned can rebut it with objective and verifiable evidence that the goods were not intended for consumption or use in the EU. For a means of transport, relevant factors include the owner's residence, the place of normal use and the links with the EU.
Actual use means using the boat for its purpose, such as transporting people or goods. Being present in the EU does not count, and neither does work that makes it fit for use. Here, the boat arrived on a trailer and was not sailed in Germany. The repairs themselves may still be subject to VAT as a service, but that is separate from the importation.
Customs duty
A customs debt did arise, because the boat was not presented to customs. Under Article 124(1)(k) of the Union Customs Code, that debt is extinguished if the goods have not been used and have left the customs territory, provided there was no attempt at deception. Repair work is not use if it could have been authorised under inward processing. The German court must check this, including whether authorisation could have been granted with retroactive effect.
What to check
- Declaring the goods and using inward processing remains the safe route. It prevents a customs debt, and the burden of proof that comes with it.
- If that step was missed, gather evidence on where the asset is normally used, why it came to the EU, what work was done and when it left.
- Goods meant for consumption in the EU are a different matter. The General Court distinguished the case law on smuggled cigarettes.
mr. J. el Khalfioui LL.M.