International transport VAT starts with the service you invoice
The VAT treatment changes completely depending on whether the invoice covers goods transport, passenger transport, a standalone logistics service or transport charged as part of a sale of goods. A carrier invoicing an independent freight service does not apply the same analysis as a supplier recharging shipping costs with an intra-EU supply of goods. VAT rules in France overview applies as the starting point for French scenarios.
Goods transport and passenger transport do not follow the same logic
Goods transport is usually analysed through the VAT rules for services, with different rules for taxable and non-taxable customers. Passenger transport follows a distance-based rule: VAT is allocated according to the part of the journey performed in each country.
B2B goods transport: reverse charge is usually the starting point
For B2B intra-EU goods transport, the general B2B place-of-supply rule usually applies. The service is taxable where the business customer is established. The provider therefore invoices without local VAT when the business customer is established in another EU Member State, and the customer accounts for VAT through the reverse charge.
Reporting obligations for B2B intra-EU transport
The supplier should report the transaction on their VAT return in France. The supplier files an EC Sales List (ESL) declaration when the customer is in another EU Member State. The invoice should clearly show that the service is subject to reverse charge by the customer.
Loading, unloading and handling can follow the transport service
Handling, loading and unloading services may follow the VAT treatment of the B2B transport service when they are ancillary to that transport. The key question is whether the ancillary service supports the main transport service or is sold as a separate, independent service.
Warehousing is a separate risk area
Standalone warehousing is normally linked to the location of immovable property. If the warehouse is in Belgium, Belgian VAT exposure may arise. Where storage is bundled with transport, logistics, maintenance or supervision, the whole arrangement may become a complex B2B service falling under the general B2B rule.
B2C goods transport depends on the route
Keep the filing layer aligned with your invoice. The EC Sales List (ESL) and INTRASTAT obligations should be checked before closing the VAT file — requirements vary by country.
Ancillary B2C services are taxed where they are performed
For non-taxable customers, ancillary services such as loading, handling or unloading are generally taxable where they are physically carried out. This creates practical issues when a route includes services performed in several countries.
Third-country routes may require a distance split
For B2C goods transport involving a non-EU country, VAT may be due in each country according to the distance travelled there. However, an exemption can apply when the transport is directly linked to importation, exportation or transit. These exemptions derive from Articles 144–147 of the EU VAT Directive (2006/112/EC).
- Check whether the transport starts and ends inside the EU.
- Identify whether the customer is a taxable person or a private customer.
- Review whether the route is directly connected to import, export or transit formalities.
Passenger transport VAT is calculated by distance
International passenger transport applies the same core rule for B2B and B2C customers: VAT is calculated according to the distance travelled in each country. A bus journey from Paris to Barcelona, for example, is split between the French and Spanish parts of the route.
National distances may be exempt in specific cases
Certain national distances may be exempt under each country's national transposing rules. Common cases include some international air and sea passenger transport, rail transit through the country, and road transport of foreign groups of 10 or more people transiting.
Keep the filing layer aligned with your invoice. The EC Sales List (ESL) and INTRASTAT obligations should be checked before closing the VAT file — requirements vary by country.
FAQ
How is VAT applied to transport costs invoiced with an intra-EU supply of goods?
Transport costs invoiced as part of an intra-EU supply of goods usually follow the VAT treatment of the goods supply. They are included in the overall transaction and can be invoiced without VAT when the conditions for the intra-EU supply exemption are met.
When should VAT be charged on international goods transport?
VAT is mainly charged when the customer is a non-taxable person. For B2C intra-EU goods transport, VAT is due in the country of departure. For third-country routes, VAT may depend on the distance travelled in each country.
How should a French supplier invoice B2B intra-EU goods transport?
The supplier usually invoices without local VAT. The business customer reverse charges VAT in its own Member State. The supplier reports the service on their local VAT return and files an EC Sales List (ESL) when the customer is in another EU Member State.
For the reporting side, see also French European services declaration (DES).
Do loading and unloading services follow the transport VAT treatment?
In B2B, ancillary services can follow the VAT treatment of the main transport service when they are genuinely accessory to it. In B2C, they are generally taxable where they are physically performed.
Is warehousing treated like goods transport for VAT?
Not always. Standalone warehousing is linked to the location of immovable property and may trigger local VAT. A broader B2B logistics package can fall under the general B2B place-of-supply rule.
How is VAT calculated on a Paris to Barcelona passenger bus journey?
VAT is calculated according to the distance travelled in each country. The French part and the Spanish part of the journey must be analysed separately.
Which French passenger transport distances may be exempt from VAT?
Certain national distances may be exempt for certain air and sea transport to or from abroad or overseas territories, rail transit, and road transport of foreign groups of 10 or more people transiting through France.
Countries concerned
