Today, in case of a service of transport of goods where a portion of the transport takes place outside the EU, said portion is outside scope of EU VAT in function of the distances covered. In order to eliminate the difficulties arising from the calculation of that portion, the new RD 57 specifies that only when the entire transport takes place outside the EU, the transport service will be out of scope of VAT.
In parallel, the new RD 57 foresees that when a transport of goods for a non EU established customer entirely takes place in Belgium, Belgian VAT becomes due (while under the old RD 57, no Belgian VAT is due).
The new RD 57 enters into force on 23 November 2017, we recommend to carefully assess the VAT treatment of the transport flows at stake.
Should you have any further question or require a personal advice with respect to the impact of these rules on your company, please get in touch with your local PwC contact.
