Value Added Tax Consolidation Act 2010 section 55

Goods in transit - miscellaneous provisions

Section 55 set out the transitional arrangements for the VAT treatment of goods in transit between new and existing Member States at the time a new Member State acceded to the European Union.

• When a country joined the EU, import VAT on goods moving between that country and existing Member States was abolished, but transitional rules were needed for goods already in transit or under customs suspension at the date of accession.
• Goods placed under temporary importation or common/customs transit procedures before the accession date continued to be governed by the rules in force when they entered those arrangements, until they left those arrangements on or after the accession date.
• A deemed importation arose where goods in free circulation in a new Member State were removed from a temporary importation arrangement or transit procedure within the State, or where goods exported VAT-free from a new Member State before accession were used in the State on or after the accession date.
• Import VAT did not apply to deemed importations where the goods were re-exported outside the enlarged EU, returned to the original exporter, or (in the case of means of transport) had already borne VAT in the Member State of export without refund.