VAT Luggage Exemption Not For Resale Items, ECJ Says

Law360 (December 17, 2020, 6:17 PM EST) -- A value-added tax exemption on goods shipped out of the European Union in personal luggage doesn't apply to items shipped for resale, Europe's top court ruled Thursday, a setback for a Hungarian supplier of ornamental plants.

The European Court of Justice ruled the exemption was meant to promote tourism and did not apply to businesses or "economic operators." The plant supplier, Bakati Plus, had been accused by Hungarian tax authorities of running a scheme to avoid taxes by transporting commercial goods in personal luggage for resale to families in Serbia.

The Administrative and Labor Court in the city of Szeged, Hungary,...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!