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Transportation of Goods for Processing: VAT Implications for Seller in EU Countries

  • When a product undergoes processing on behalf of the seller, the transport to the buyer is considered to begin only when the product is in accordance with the sales agreement
  • The Swedish Tax Agency considers the product to reach the desired condition only after processing, and the transport to the buyer starts at the location of processing
  • If processing occurs in Sweden and the seller is established in another EU country, the physical transport from the seller’s warehouse in the other EU country to Sweden is considered a transfer and the use after transport is treated as an intra-Union acquisition, a taxable transaction.


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.


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