Comments on ECJ C-602/24: Exemption for I/C supplies even if goods are exported

Case Background: W. sp. z o.o. declared the supply of apples as intra-Community supplies to a Latvian contractor, but the goods were exported to Belarus by the buyer without the supplier’s knowledge, prompting tax authorities to challenge the 0% VAT rate.
CJEU’s Judgment on Export Exemption: The Court of Justice of the European Union (CJEU) ruled that the export exemption can still apply even if the transaction was initially declared as an intra-Community supply, provided the actual export outside the EU is confirmed by customs documentation.
Seller’s Knowledge Irrelevant: The court emphasized that the seller’s lack of knowledge regarding the buyer’s export decision does not affect the right to the export exemption, and deficiencies in the seller’s transport documents do not negate the exemption if evidence of actual export exists.

EU Court Rules VAT Exemption Applies Even if Goods Transported Outside EU Without Seller’s Knowledge

The VAT exemption regime remains valid if the buyer transports goods outside the EU.
A transaction initially declared as an intra-community supply can be considered an indirect export if the goods are transported outside the EU without the seller’s knowledge.
The EU Court of Justice ruled on this matter on August 1, 2025, in case C-602/24.
The case involved a company that classified an apple supply as an intra-community transaction, but the goods were exported from Poland to Belarus without the seller’s knowledge.
The Polish tax authorities reclassified the transaction as a domestic supply subject to VAT, but the company argued it should be considered an indirect export.
According to EU Directive 2006/112, member states exempt goods transported outside the EU by the seller or buyer.
The EU Court of Justice established criteria for export: transfer of ownership, proof of transport outside the EU, and physical exit from the EU.
In this case, all criteria were met, and the goods left the EU, so the transaction should not be considered a domestic supply.
The court concluded that the VAT exemption should apply even if some formal requirements were not met, upholding the principle of fiscal neutrality.