- A Romanian transportation company assumed that its services were VAT exempted when transporting imported goods because it believed the cost was included in the VAT taxable base for importation of goods.
- However, tax authorities claimed otherwise, denying the exemption because the taxpayer failed to provide documents confirming that the service was not VAT exempted.
- The Court ruled that transportation costs are not necessarily included “automatically” in the customs value of imported goods, and thus, it is necessary to check whether the transportation costs have been included in the customs value.
- The Court also stated that the tax authority must take into account all documents presented to determine whether the conditions for exemption have been met, and exemption should be denied when the necessary information is lacking.
- The verdict has been criticized for not resolving the issue and creating confusion.
Source Pawel Mikula
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
