EU Court Upholds VAT Exemption for Exported Goods Despite Initial Intra-EU Delivery Intentions

The European Court of Justice ruled that tax exemption on exports can apply even if goods were initially intended for delivery to another EU member state, provided conditions for exemption are met.
A Polish company declared tax-exempt apple deliveries to another member state, but the goods were exported to Belarus without the supplier’s knowledge.
Polish tax authorities argued the delivery should be taxed as it was not to another member state.
The court stated tax exemption applies if ownership rights are transferred, goods are sent outside the EU, and physically leave the EU.
The first criterion was met as ownership was transferred to the buyer.
The second criterion requires objective conditions for tax exemption, regardless of initial delivery agreements or supplier awareness.
The third criterion was met as the apples were transported outside the EU by the buyer.
Tax exemption ensures taxation where goods are consumed, not where they are delivered.
The court emphasized that if substantive requirements are met, tax neutrality demands exemption even if formal requirements are not fully met.
The court concluded that tax exemption was applicable as the export was confirmed by tax authorities through customs documents.

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.