Earlier (see this post) we already posted about Petition No 0276/2022 by Ine Lejeune on behalf of Danish Shipping (Denmark’s shipowners’ association) about the VAT exemption on the transportation of exported goods
Ine Lejeune has now provided us with the following update:
- The Petition’s importance is reflected by the support of 51 organisations to date from a broad range, not only of transport providers and their European associations, but also from the indirect tax practitioners’ community.
- The Petition Committee (PETI) has declared our petition admissible. It has asked and received the Opinion of the Committee on Economic and Monetary Affairs (hereafter ECON) in January 2023. ECON also asked advice to its subcommittee on tax matters, FISC.
- ECON is of the Opinion that the Member States should reconsider the guidelines in the VAT Committee, taking the most recent case law into account. This is exactly what we ask for in our Petition. This is also the initiative Belgium is taking by resubmitting the file to the VAT Committee.
- The EU Commission has unfortunately not changed its position on the matter.
- We therefore should – with all stakeholders – continue to put pressure on the Commission and especially on the Member States to revisit the guidance of the VAT Committee in order to exempt all transportation services to export goods throughout the supply chain and independent of the status of the transporter (main contractor, agent or sub(sub) contractors).
- Furthermore, it is not because the Commission does not want to revisit its’ wrong guidance that Member States therefore now all have to implement the wrong guidance. This is not correct. Indeed the VAT Committee only issues guidelines and many MSs do not want to implement something they consider not only non-binding but also incorrect and burdensome.
- Moreover any Member State can – at any time – consult the VAT Committee further to Article 398 of the VAT Directive. This request should then be examined by the VAT Committee. The Commission as Chair of the VAT Committee cannot ‘object’ to this. Such consultation can concern a previous interpretation/guideline of the VAT Committee in view of e.g., the case law of the CJEU.
- In the meantime, Danish Shipping (Denmark’s shipowners’ association) will ask PETI to organise a public hearing involving the EU Commission, the Petitioner, the Industry, the supporting associations/businesses and VAT Experts.
- During the International VAT Association’s May conference, Jean Aubert and myself will make a short presentation to update the members and to ask for their continued support.
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