The Provincial Administrative Court in Rzeszów has already held in a number of cases in 2025 that AES messages (i.e. IE599), which are required for use of the zero rate of VAT, may be cancelled by customs authorities. The cases dealt with by the court (e.g. case number I SA/Rz 68/25, judgment of 8 April 2025) involved goods that were supposed to be moved out of the customs territory of the European Union (EU) but were shown in course of the proceedings not to have actually left it. The court held that where there are doubts about whether or not the goods were actually exported, the customs authorities may demand additional documentary evidence on top of customs documents. If the exporter fails to provide reliable alternative evidence unambiguously demonstrating that the goods have left the EU customs territory, the authorities may challenge application of the zero rate of VAT to the transaction.

 As regards the case concerned:

  • It was established that the goods were not physically presented to customs authorities designated as customs office of exit, even though AES generated IE599 messages to confirm export.
  • The exporter showed invoices, payment confirmations etc., which however did not prove that the goods physically left the EU. The court held that the documents only evidenced the transaction itself but not the physical movement of the goods out of EU.
  • There being no evidence of actual exit, the customs authorities cancelled the declaration.
  • The court explained that the privilege of using the zero rate of VAT may not be exercised by the exporter until he provides documentary evidence that the goods physically left the EU territory, which clearly means that the responsibility for the good ends not when they are brought into another EU country but only when they are brought out of the EU territory.
  • With no clear evidence as above, the export may not be zero-rated for VAT purposes.

Importantly, the court made a point of noting that the customs declaration may be cancelled regardless of exporter’s good faith or lack thereof. What is crucial is whether or not the goods actually left the EU customs territory.

The commented case emphasises the key relevance of the goods actually exiting EU customs territory and the exporter’s responsibility for providing documentary evidence of the process. Exporters will do best to make sure their export documentation is complete and customs procedures are monitored. You should be especially careful in situations where there is a change of the customs office of exit (e.g. to one that is farther away), in which case you should be certain that the goods indeed left the EU. This will help avoid the risk of the customs declaration being cancelled and the exporter being required to pay VAT and potential surcharges or penalties.

If this issue pertains to your business and you are interested in our assistance, please contact us. 

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