Comments on ECJ C-602/24: Intra-Community Supply Requalified as Export, VAT Exemption Upheld

A Polish company faced a VAT exemption challenge for an intracommunity goods delivery to Lithuania, which were unknowingly transported to Belarus by the buyer.
Polish tax authorities refused the VAT exemption and demanded VAT application on the transaction.
The Warsaw administrative court referred a question to the Court of Justice of the European Union on July 12, 2024, registered on September 17, 2024.
The court sought clarification on interpreting the VAT directive regarding requalifying an intracommunity delivery as an export.
The Court ruled that the VAT directive allows exemption for deliveries initially declared as intracommunity, even if the export occurred without the supplier’s knowledge and was confirmed by customs documents.
The decision emphasized the principles of neutrality and proportionality in VAT, stating formal requirements should not hinder substantive exemption conditions.