According to the Austrian tax administration, the German tax administration, as well as the German Supreme Federal Fiscal Court, the entitlement of a taxable person to input VAT deduction in respect of the importation of goods shall depend on the requirement that such taxable person had power of disposal over the goods at the time of their importation. Contrary to such prevailing view, the author will demonstrate that, based on the CJEU’s statements in DSV Road A/S and Weindel Logistik Service, any taxable person presenting customs import documents specifying him as consignee or importer of goods should be entitled to input VAT deduction in respect of the importation of goods if he fulfills at least one out of two alternative criteria: (1) he is the owner of the goods (or obtains the right to dispose of the goods as owner) and/or (2) he evidences that “the cost of the input services is incorporated either in the cost of particular output transactions or in the cost of goods or services supplied by the taxable person as part of his economic activities". While logistic providers will typically not be able to fulfill either of these two criteria, this differentiation may be particularly relevant for taxable persons supplying goods in cross-border supply chains if they become subject to import VAT pursuant to VAT and customs provisions without having power of disposal over the goods at the time of their importation into the EU.
