Case: EU distance selling

The CJEU decision in KrakVet Marek Batko sp.k. (C-276/18) reveals the fractured nature of the EU VAT system.

The issue was whether a Polish supplier of goods by distance selling should pay tax in the recipient country (Hungary) or in Poland, where the goods started on their journey. The company had used the approach of offering the customer a choice to appoint their own carrier, or to use the recommended carrier of the supplier. This approach will be closed down with effect from January 2021, but in the meantime, it is theoretically possible to apply it.