VAT profiles in community processing:

The Court of Justice, in its ruling on Case C-446/13 of Oct. 2, 2014, confirming the Advocate General’s conclusions, held that the supply of goods shipped to another EU member country to be processed, on behalf of the supplier, before being delivered to the transferee residing there, is not intra-Community in nature.

In practice, for the purpose of identifying the VAT regime applicable to the supply, a distinction must be made depending on whether the EU customer’s purchase order is for the processed good, or the good to be subsequently processed by the subcontractor.

In conclusion, it is necessary to always verify the territorial premise of the intra-EU transaction in all its aspects.

We remain available for clarification.