The new role of the EU Court in tax and customs matters

The new role of the European Union Court in tax and customs matters
As of 1 October 2024, significant changes have been introduced in the judicial structure of the European Union regarding the handling of tax and customs cases. Under an amendment to the statute of the Court of Justice of the European Union (CJEU), which took effect in September 2024, responsibility for rulings on matters related to VAT, excise duty, customs, and goods classification has been transferred to the General Court of the European Union (General Court). Furthermore, the General Court will also address preliminary questions concerning compensation for passengers in cases of boarding denial, delays, or flight cancellations, as well as issues related to the EU’s Emissions Trading System (ETS).

Changes in preliminary rulings and the verification process

The amendment does not alter the procedure for submitting preliminary questions – they will still be directed to the CJEU, which will assess whether a particular question qualifies for consideration by the General Court. If a case involves tax, customs, or other newly assigned competences of the General Court, the CJEU will transfer it to the appropriate court. Importantly, in situations where preliminary questions could impact the unity or coherence of EU law, the General Court will refer them back to the CJEU, so that the Court can maintain full oversight over the uniform interpretation of EU law.

Role of the General Court and judicial composition

The General Court, comprising 54 judges (two from each member state), has acquired enhanced competencies in adjudicating tax and customs matters. This decision results from the increasing number of cases in this area – between 2017 and 2022, around 20% of preliminary questions concerned these topics. However, only a few of these questions had significance for the unity of EU law, which further substantiated the need for change.

Impact of the amendment on polish tax regulations

In Poland, initial steps have already been taken to adapt regulations to the new legal landscape. Changes will be particularly necessary in the context of tax regulations, which currently refer to CJEU rulings. Now that the General Court will assume competence in tax cases, these provisions may require adjustments to reflect the new division of responsibilities between the CJEU and the General Court.

Conclusion

The changes in the EU’s judicial structure regarding tax and customs matters represent a step towards streamlining the decision-making process in cases that rarely affect the unity of EU law but are operationally significant for member states. Shifting responsibility to the General Court may accelerate and improve the efficiency of adjudication in such cases, ensuring a more effective functioning of the EU’s judicial system.

If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.

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