Transport services within the European Union following import may be exempt from VAT – however, the taxpayer should prove the grounds for exemption (CJEU judgment of September 7, 2023, C-461/21)
A Romanian company provided transport services for goods imported into the EU, considering them exempt from VAT. However, tax authorities found that the service was not exempt as it was not proven that the cost of the service was included in the importer’s VAT tax base. The EU court agreed and stated that the exemption must be proven with appropriate documents. This ruling may cause issues for service providers who may not have access to such documents. They may now have an obligation to collect them.
Source Deloitte
See also
- C-461/21 (Cartrans Preda) – Judgment – Exemption for (transport) services to imported goods also if documents prescribed by national regulations are not available
- Summary of the ECJ Case C-461/21 (Cartrans) – VAT exemption for carriage services connected with the importation of goods
