When an incorrect EORI number creates an import VAT risk: Lessons from a German court case.

In a decision dated 25 June 2026, the Finanzgericht München considered a case in which a customs forwarder entered an incorrect EORI number in an import declaration. As a result, the party identified in the declaration was not the party the forwarder intended to represent.

The consequences were significant. The court treated the forwarder as acting without valid authorisation for the party identified in the declaration. This resulted in the forwarder becoming personally liable for the import VAT. Whether that VAT can ultimately be recovered is a separate VAT question and may depend on the specific circumstances.

The case is now pending before the Bundesfinanzhof, Germany’s highest federal tax court. The decision is therefore not final and the Bundesfinanzhof may reach a different conclusion.

Even so, the case highlights an important compliance risk: the party in the customs declaration, the EORI number and the underlying Power of Attorney (POA) need to align.

What happened in the German EORI case?

The customs forwarder submitted an import declaration under direct representation but entered an incorrect EORI number. According to the reported case, the German ATLAS declaration system did not identify the discrepancy between the EORI number and the corresponding name and address details. The wrong party was therefore registered as the declarant.

After discovering the error, the forwarder sought to correct the declaration under Article 173(3) of the Union Customs Code. The Finanzgericht München rejected the correction.

This turned what might appear to be a data error into a representation issue. The authorisation held by the forwarder did not cover the party actually identified in the declaration. The forwarder was consequently treated as acting without valid authorisation and became personally liable for the import VAT.

Why can an incorrect EORI number create a representation risk?

The case illustrates why an EORI number is more than an isolated field in a customs declaration. It can affect the identity of the party for whom a customs representative is considered to be acting.

Having a Power of Attorney on file may therefore not be enough if that authorisation does not cover the party identified in the declaration. The declaration data, represented party and authority to act need to correspond.

Three checks are particularly important:

1. Party in the declaration: Is the correct legal entity identified?
2. EORI information: Does the EORI number correspond with that entity?
3. Power of Attorney: Does the representative have valid authorisation for that specific entity?

The aim is straightforward: the declaration, the represented party and the authority to act should all tell the same story.

Four practical lessons for customs representatives and importers

1. Check the represented party before submitting a declaration

The legal entity and its EORI information should be verified as part of the declaration process. A mismatch can affect more than the accuracy of the declaration itself.

2. Make sure the POA covers the correct entity

The Power of Attorney should correspond with the party for whom the customs representative is actually acting. This is particularly relevant where businesses operate through multiple legal entities.

3. Do not rely on correcting errors afterwards

The forwarder attempted to correct the declaration after discovering the mistake, but the court rejected the request. Strong controls before submission are therefore important, especially where an error could change the identity of the represented party.

4. Understand the potential VAT exposure

The financial consequence makes this case particularly relevant. The forwarder was held personally liable for the import VAT. However, this does not necessarily mean that the VAT is definitively lost. Whether import VAT can still be recovered is a separate VAT question and depends on the circumstances.

German VAT guidance provides for situations in which input VAT deduction may still be recognised on equitable grounds, provided the relevant conditions are met. Representation arrangements are therefore not simply an administrative formality, but neither should an incorrect declaration automatically be treated as meaning the import VAT is irrecoverable.

Why does the Bundesfinanzhof appeal matter?

The Finanzgericht München decision is not yet the final legal position. The case is pending before the Bundesfinanzhof, which could uphold the decision, change its reasoning or reach a different conclusion.

Its eventual judgment will therefore be important for customs representatives, importers and logistics providers. Until then, businesses should be careful about drawing definitive legal conclusions from the Finanzgericht München decision.

There is, however, a practical question businesses can already ask: are our declaration data, EORI information and Powers of Attorney consistently aligned?

Getting customs representation right

At Gaston Schul, direct and indirect representation form part of our Customs Clearance and Fiscal Representation & VAT services. The appropriate structure depends on liability preferences, local requirements and the commercial setup.

Cases like this demonstrate why clear representation arrangements and accurate underlying information matter. They provide Clarity over who is acting for whom and greater Control over the customs process. Together, these provide Confidence that the setup can stand up to scrutiny.

Could your customs representation setup benefit from a review?

If you operate across multiple entities, use customs representatives or want to review how your Powers of Attorney, EORI information and representation arrangements work together, our Customs & Trade specialists can help.

Talk to a Customs & Trade specialist about your customs representation setup.