A freight forwarder filed an application to the Polish tax authorities to obtain confirmation as to whether the importation of small consignment goods between private individuals could be VAT exempt even though the recipient of the goods was in another Member State. After the tax authorities rejected the exemption, the case was ultimately presented to the Polish administrative supreme court, which referred the question to the CJEU.
The CJEU held that the VAT exemption for small consignment goods could not be refused for small consignments of a non-commercial character sent from third countries to private individuals residing in a different Member State than the country of importation.
Key takeaway
Freight forwarder should remain aware that the exemption on small consignments applies even for supplies between private individuals and regardless of the EU country of residence of the buyer.
Reference
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