A supply of goods initially declared by the supplier as an intra-EU transaction, but which – without the supplier’s knowledge – was transported by the purchaser outside the EU, is eligible for the VAT exemption applicable to exports provided that proof of exit from the EU customs territory is available (CJEU, 1 August 2025, C-602/24).
Case Description
A Polish company invoiced certain supplies of goods applying the VAT exemption for intra-Community supplies.
The transport of the goods to Lithuania was to be arranged by the purchaser, a company based in the United Kingdom but VAT-registered in Latvia.
However, the Polish tax authorities, based on customs documentation, determined that the goods were not transported to Lithuania but to Belarus, i.e., outside the EU. Consequently, they assessed VAT against the Polish supplier.
The national court, tasked with deciding whether – as argued by the Polish company – the supply can be reclassified as an export, suspended the proceedings and referred a preliminary question to the European Court of Justice. The key issue is whether the VAT exemption for exports can apply even if the goods were taken outside the EU without the supplier’s knowledge.