New rules require companies to adjust how they handle goods delivered in multiple steps but part of a single transportation process. Companies must attribute the transport to a specific stage of the delivery process to accurately determine whether it occurs within the country’s borders for taxation purposes. The transportation is connected to the stage where the seller is located, except when the purchaser is a taxable entity responsible for transportation but not physically located within the country. In such cases, transportation should be associated with the transaction where the non-resident taxable entity acts as the buyer.
Source VATit
