Contribution of Ine Lejeune
VAT Commentary published by the Belgian Tax Authorities on Exemptions for international transport services
Positive Developments in Belgium’s VAT Exemption Application for Transportation Services
Belgium has recently seen several positive developments regarding the application of VAT exemptions in the transportation sector. These developments provide clarity and reinforce the relevance of certain entities, including Cartrans Spedition, in the context of value-added tax (VAT). Let’s explore these developments in more detail:
1. Confirmation of Belgium’s Current Exemption Application
The commentary affirms that Belgium continues to uphold its existing application of the exemption. This consistency provides stability for businesses operating within the transportation industry. Whether you’re involved in road transport, shipping, or aviation, Belgium’s commitment to maintaining the exemption ensures a predictable regulatory environment.
2. Broad Application Across the Transportation Chain
Belgium’s VAT exemption extends broadly across the entire transportation chain. Whether you’re a carrier, freight forwarder, or logistics service provider, the exemption applies consistently. This inclusivity benefits both domestic and international transport services, fostering a competitive and efficient environment for businesses.
3. Acknowledgment of Cartrans Spedition’s Relevance
In section 5 of the commentary, Cartrans Spedition is explicitly mentioned. This section outlines how to substantiate the exemption’s applicability. Notably, Belgium recognizes Cartrans Spedition’s significance, even in contrast to the EU Commission’s perspective. The case law, particularly the Cartrans Spedition SRL Judgment by the Court of Justice of the European Union (Case C-495/17, November 8, 2018), reinforces the importance of proper documentation and evidence when claiming the exemption.
Proving the Exemption
Belgium emphasizes that no single document alone is necessary or sufficient to prove that a service meets the conditions prescribed by Article 41, §§ 1 and 2, of the VAT Code. Instead, any relevant documentary evidence is admissible. This approach aligns with the principles set forth in the Cartrans Spedition case, emphasizing the need for comprehensive documentation.
Source Fisconet
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