Assessment of the Actual Place of Dispatch of Goods: Evidence Based on Customs and Accounting Records

Assessment of the Actual Place of Dispatch of Goods: Evidence Based on Customs and Accounting Records

Summary – Key Takeaways

• The decisive criterion for determining the place of supply of goods for VAT purposes is the actual and effective place from which the goods are dispatched, irrespective of the seller’s place of establishment.
• A foreign company may be subject to French VAT if the tax authorities can demonstrate that goods sold to French customers are in fact dispatched from France.
• Conversely, the taxpayer may successfully challenge such an assessment by providing concrete and consistent evidence, notably customs and accounting documents, proving the effective transfer of operational and logistical resources abroad.

Source juricaf

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Article

In its judgment of 26 February 2026 (CAA of Toulouse, No. 24TL00147, ExcepcioLogistique), the Administrative Court of Appeal of Toulouse provides a clear illustration of how VAT liability for cross-border supplies of goods hinges on the real place of dispatch of the goods, assessed on a factual and economic basis.

The case concerns ExcepcioSL, a company incorporated under Andorran law, specializing in the distance selling of electronic products to customers located in France. Although formally established in Andorra, the company maintained logistical resources in France and had appointed a French fiscal representative. Following a tax audit, the French tax authorities concluded that the supplies made by ExcepcioSL were subject to French VAT, on the grounds that the goods were dispatched from French territory.

The Court first upholds the position of the tax authorities for part of the audited period, finding that the goods sold to French customers were indeed physically dispatched from France. In this context, the Court reiterates that the legal place of establishment of the company is not decisive. Where the material dispatch of goods originates in France, the supplies must be regarded as taking place in France and are therefore subject to French VAT.

However, the Court reaches a different conclusion for the period from February 2016 onwards. It notes that, from that date, the company provided sufficient evidence that its operational resources had been effectively transferred to Andorra, and that the goods were no longer dispatched from French territory. This conclusion was based on a detailed analysis of customs documentation, accounting records, and logistical evidence, which collectively demonstrated the actual relocation of the point of dispatch.

On this basis, the Court held that supplies carried out from February 2016 could no longer be regarded as located in France and therefore fell outside the scope of French VAT.

This decision serves as a strong reminder that VAT analysis must be grounded in economic reality rather than formal arrangements. The actual place of dispatch of goods is a factual matter to be assessed case by case, based on tangible and verifiable evidence. Customs declarations, transport documentation, warehouse records, and accounting entries play a critical role in establishing where the dispatch truly takes place.

For businesses engaged in distance selling or cross-border logistics—particularly those operating with infrastructure in multiple jurisdictions—this ruling underscores the importance of robust documentation and clear operational alignment. Failure to substantiate the real location of logistical operations may expose non-resident suppliers to unexpected VAT liabilities in the country from which goods are effectively dispatched.

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