The VAT administration recently published a circular [1] limiting the application of the VAT exemption for international freight transport. In order to benefit from the exemption, (1) not only must a direct link be demonstrated with the goods intended for export, but (2) from now on, the recipient of the transport service must also be taken into account. After all, the service will only be applicable if the transport has been performed for the ‘sender’ or ‘recipient’ of the goods. The exemption will no longer apply to subcontracted transport services.
Source Grant Thornton
