INDUSTRY CALLS FOR HARMONISED VAT GUIDELINES IN TRANSPORT
On 6 July, CLECAT co-signed a joint statement supporting petition N° 0276-2022 to retain the broad application of economic VAT exemption for transport and other services directly linked to export of goods.
The supply chain industry, including transportation, plays a crucial role in the single market and European international trade. However, significant regulatory barriers persist, hindering efficient and interoperable transport solutions. Recently, a new barrier emerged following an ECJ ruling (L.Č.’ IK, C-288/16 of 29 June 2017), leading certain Member States to restrict the VAT exemption for transport services when exporting goods if the services are not invoiced to the exporter or importer.
CLECAT, as well as the other signatories, strongly believes that this interpretation by the Member States and the European Commission is incorrect, as it contradicts more recent case law and is inconsistent with other EU regulations. This incorrect interpretation, along with disharmonised implementation across Member States, creates administrative burdens, costs, and legal uncertainties for stakeholders in the transport supply chain and tax authorities.
Support for a revision is given by the European Parliament where the Committee on Petitions together with the Economic and Monetary Affairs Committee invite the Member States to reconsider the guidelines in the EU’s VAT Committee, taking the most recent case law into account. It is of the utmost importance to initiate a constructive discussion with the transport industry to establish practical guidelines that restore the full application of the economic exemption, leveling the global playing field for the EU industry.
Implementing straightforward EU guidelines will reduce burdens for industry and authorities, prevent tax disputes and uncertainties, ensure harmonised implementation, enhance transparency, minimize the risk of VAT fraud and maintain the global competitiveness of EU businesses engaged in export trade.
The full text of the joint statement can be accessed via this link.