Exemption of VAT for Intracommunity Transport after Import: Cartrans Decision Explained

The case of Cartrans involves the exemption of VAT on intracommunity transport following an import.
Cartrans sold a transport service between the Netherlands and Romania, which was exempt from VAT.
The Romanian tax administration challenged the exemption, stating that Cartrans did not provide sufficient documentation.
The case was brought to the Court of Justice of the European Union (CJEU) to determine if transport services between the country of import and the final destination in another EU member state can always be exempt from VAT.
The CJEU clarified that two conditions must be met for the exemption: the transport service must be linked to an import of goods, and the value of the service must be included in the VAT base of the import.
Transporters can provide proof of inclusion in the VAT base through documents such as a CMR, transit document, or transport invoice/contract.
If the transport service does not meet the exemption conditions, VAT must be paid according to the general rule.
Three possible situations arise depending on the location of the client: local VAT collection, HT billing with self-liquidation of VAT by the client, or HT billing with self-liquidation of VAT by the client in a third country.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.