Ruling on VAT liability for Belgian import fiscal representatives for warehouses

24 December 2011

This week, the European Court of Justice, ECJ, ruled that the operators of Belgian VAT import warehouses could not be held liable for VAT if they acted in good faith and with proper due diligence.

 VAT liability of fiscal representative for warehouses in Belgium

The ruling, based on Vlaamse Oliemaatschappij v. F.O.D. Financiën (C-499/10), concerned an importer of petrol products into Belgium.  The petrol was stored in a VAT-suspension warehouse until they are sold and despatched to local, Belgian customers.  At this point, on leaving the warehouse, the goods then become to liable to Belgian VAT.  The owner of the goods went into liquidation still owing a large amount of import VAT.  The Belgian tax authorities then pursued the operator of the tax warehouse where the goods had been held.  The operator appealed, and the case went to the ECJ.

 ECJ rules on VAT Directive

The ECJ agreed that in accordance with Article 205 of the European Union VAT Directive 2006/112) another party may be held jointly and severally liable for the VAT.  However, the Court held that applying this liability disproportionately, ie if the VAT warehouse operator acted in good faith and with proper due diligence, then they could not be held liable for the missing VAT.

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