(Lexology – Erik de Bie, Greenberg Traurig LLP)
The Modernized Customs Code of the EU provides importers the option to
be authorized to declare and pay customs duties to local customs authorities in
the country in which they are established, irrespective of where the goods
enter the EU and their final destination within the EU. This regime is referred
to as “Centralized Customs Clearance.” The related customs formalities and
implications are well described, and the EU customs authorities are
increasingly familiar with this important development.
However, when exploring options to implement the Centralized Customs Clearance
options, importers are confronted with the fact that the VAT legislation is not
in line with this centralized customs regime. From a VAT point of view,
importers must still think “Member State by Member State” rather than cross-border and centralized. The European Commission is
studying which options are available to overcome this VAT problem, which is why
it consulted with EU businesses to learn more about the options and
preferences. The outcome of this consultation process was recently published.
Read more here.
