Circular 2021/C/101 on the VAT exemption for transport services directly related to an export of goods - postponed till April 1, 2022

Addendum to Circular 2021/C/96 of 27.10.2021 on the VAT exemption for transport services directly related to an export of goods.

1. Circular 2021/C/96 on the exemption from VAT for transport services directly related to an export of goods, implements a judgment (1) of the Court of Justice of the European Union regarding the scope of the exemption provided for in Article 146(1)(e) of Directive 2006/112/EC (2) for transport services directly related to the export of goods.

(2) Council Directive 2006/112/EC of 28.11.2006 on the common system of value added tax.

This circular was published on 27.10.2021 and discusses the consequences of the aforementioned judgment for Belgian VAT legislation. More specifically, the scope of the exemption provided for in Article 41, § 1, first paragraph, 3°, of the VAT Code is further defined with regard to transport services directly related to the export of goods.

The said exemption for transport services directly related to the export of goods can only apply in the relationship between the service provider on the one hand and the sender or recipient of the goods to be exported on the other. When the service provider uses a subcontractor for such transport services, the service provided by the subcontractor cannot be exempt from VAT pursuant to Article 41, § 1, first paragraph, 3°, of the VAT Code.

2. After consultation with the sector, the Deputy Prime Minister and Minister of Finance, in charge of the Coordination of Fraud Prevention, has decided to postpone the entry into force of this circular until 01.04.2022.

3. The paragraph included in Title IV of Circular 2021/C/96 of 27.10.2021 is replaced by the following:

‘In order to allow the taxable persons concerned to comply with the aforementioned limitation of the scope of the exemption provided for in Article 41, § 1, first paragraph, 3°, of the VAT Code with regard to freight transport services, it is set out under point III. administrative position applicable from 01.04.2022 .’

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