ECJ Supply Decision Could Spell Higher VAT For Polish Co.

Law360 (June 18, 2020, 8:46 PM EDT) -- A Polish supplier of animal products could be subject to Hungary's higher value-added tax rate on shipments after Europe's top court decided Thursday that third parties supply goods on a company's behalf when the supplier makes key shipping decisions.

The ruling applies to companies like KrakVet, the Polish supplier, that ship goods to other European Union countries and give their customers the option to use a third-party company to help transport their purchased goods. KrakVet offered its Hungarian customers the option of having a Polish shipping company, Krzysztof Batko Global Trade, transport its products to their address. The owner of KBGT...

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