ARTICLE · 23 JUNE 2025

German Tax Update – 12 June 2025

Alvarez & Marsal

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With summer holiday season just around the corner, the European Court of Justice (ECJ) has delivered a traveller-friendly ruling. In its judgment of June 12, 2025 (C125/24 – -Palmstråle)...

GermanyTax

Clemens Petersen

Anastasia Büttner

No customs duties and Import VAT for returned goods despite incorrect customs handling – Just in Time for Summer Holidays

With summer holiday season just around the corner, the European Court of Justice (ECJ) has delivered a traveller-friendly ruling. In its judgment of June 12, 2025 (C125/24 – -Palmstråle), the ECJ clarified that individuals returning to the EU from non-EU countries – such as Norway – are not automatically liable for import VAT if they fail to complete certain customs formalities, provided they acted in good faith and the goods were originally exported from the EU and thus fulfilling all prerequisites for a duty free import as "returned goods".¹

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