{"id":11207,"date":"2025-03-07T15:15:40","date_gmt":"2025-03-07T13:15:40","guid":{"rendered":"https:\/\/gls-law.company\/?p=11207"},"modified":"2025-03-07T15:15:41","modified_gmt":"2025-03-07T13:15:41","slug":"freight-forwarding-services-and-auxiliary-operations-how-to-determine-vat-correctly","status":"publish","type":"post","link":"https:\/\/gls-law.company\/en\/freight-forwarding-services-and-auxiliary-operations-how-to-determine-vat-correctly\/","title":{"rendered":"Freight Forwarding Services and Auxiliary Operations: How to Determine VAT Correctly?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Freight forwarding services involve not only the organization of cargo transportation but also a range of auxiliary operations, such as loading, unloading, and storage. However, from a tax perspective, VAT for these services is determined differently, which can significantly impact businesses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udd39 <strong>Tax Authority\u2019s Position<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If these are <strong>freight forwarding services<\/strong> (transportation arrangement), VAT is determined based on the client\u2019s place of registration.<\/li>\n\n\n\n<li>If these are <strong>auxiliary operations<\/strong> (loading, unloading, warehousing), VAT is determined based on the place where the service is physically performed.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udd39 <strong>What Does This Mean for Businesses?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udca1 <strong>Key Risks and Recommendations:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2714\ufe0f <strong>Clearly separate forwarding and auxiliary services in contracts<\/strong> \u2013 this will help determine VAT correctly and avoid additional charges.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2714\ufe0f <strong>If the client is a non-resident, forwarding services may be VAT-exempt.<\/strong> However, if the services involve warehousing or unloading in Ukraine, VAT applies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2714\ufe0f <strong>Verify VAT rules for international transportation<\/strong> \u2013 misinterpretations can lead to significant tax risks and penalties.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\ude9b <strong>Are you working with logistics and forwarding services?<\/strong> Ensure your contracts comply with tax regulations. Need help? We can assist you!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Freight forwarding services involve not only the organization of cargo transportation but also a range of auxiliary operations, such as loading, unloading, and storage. However, from a tax perspective, VAT for these services is determined differently, which can significantly impact businesses. \ud83d\udd39 Tax Authority\u2019s Position \ud83d\udd39 What Does This Mean for Businesses? \ud83d\udca1 Key Risks [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":11165,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[229],"tags":[],"class_list":["post-11207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-taxes"],"_links":{"self":[{"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/posts\/11207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/comments?post=11207"}],"version-history":[{"count":1,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/posts\/11207\/revisions"}],"predecessor-version":[{"id":11208,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/posts\/11207\/revisions\/11208"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/media\/11165"}],"wp:attachment":[{"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/media?parent=11207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/categories?post=11207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gls-law.company\/en\/wp-json\/wp\/v2\/tags?post=11207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}