VATupdate

Share this post on

CJEU Rules 0% VAT Applies to Goods Exported Outside EU Without Supplier’s Knowledge

  • CJEU issued a judgment on August 1, 2025, regarding reclassification of transactions from intra-Community supply to export.
  • The case involved a Polish taxpayer where goods were initially reported as moved from Poland to Lithuania.
  • Polish tax authorities found the goods were actually exported outside the EU, questioning the intra-Community transaction classification.
  • Authorities imposed a 5% VAT rate and a 30% penalty due to improper verification of delivery.
  • The Polish company argued for reclassification as indirect export with a 0% VAT rate.
  • The case was referred to the Court of Justice for a preliminary ruling.
  • Key issues included whether goods declared as intra-Community supply should be considered export if moved outside the EU, and the relevance of the supplier’s knowledge.
  • CJEU ruled that a 0% VAT rate applies if the export was established by customs documents, even without the supplier’s knowledge.
  • The ruling emphasized the importance of definitions and objective criteria for export and supply of goods.

Source: mddp.pl

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.

Sponsors:

VATIT Compliance
Pincvision

Advertisements:

  • Pincvision
  • vatcomsult