Until the end of the non-objection phase on 31 December 2021, all transport services in connection with exports to third countries were tax-free. In future, this will only apply to services provided directly to the consignor (supplier) or the recipient (buyer) of the goods.
The application of the regulation will finally come into force on 01.01.2022.
Significance:
The tax exemption only applies to the transport services of the main carrier, but not to those of the sub-carrier. The BMF defines the main carrier as the trader who carries out the transport services for the supplying consignor or recipient of the goods, e.g. a logistics service provider. Sub-carriers are transport service providers who provide services to an entrepreneur who is not the consignor or consignee in this sense.
Example:
A logistics service provider is commissioned by the manufacturer to transport goods from Germany to the UK. The logistics provider uses a subcontractor to actually carry out the transport. According to the new regulation, only the transport service provided directly to the sender or recipient of the goods is covered by the tax exemption. The service provided by the subcontractor to the logistics provider is taxable.
Clients must now declare to their contractors in which role (consignor, consignee, main carrier or sub-carrier) they will use the transport service to third countries from 1 January 2022.
