Ex works supplies: a small detail with major VAT risk

In practice, we see that this risk often only becomes visible during a tax audit, at which point it is usually too late.

The core issue: the burden of proof lies with you

When applying the zero VAT rate to an intra-Community supply, the supplier must be able to demonstrate that the goods have actually left the Netherlands. This is exactly where ex works creates exposure. The supplier has no control of the transport, often lacks transport documents, and depends heavily on information provided by the customer. Nevertheless, the burden of proof remains entirely with the supplier.

The pickup statement: useful, but not a silver bullet

In these situations, you may rely on a pickup statement. According to policy from the State Secretary, this can form part of yourVAT evidence.

There are clear requirements:

• the statement must include details such as the customer’s name, address and VAT number;
• a description of the goods;
• the destination Member State;
• the date of collection;
• a declaration that the goods will be transported to another EU country.

This may sound straightforward, but the real assessment goes beyond the document itself.

No checklist, but a holistic assessment

The key principle is that the evidence must be assessed based on all facts and circumstances. A pickup statement is not a standalone piece of conclusive evidence; it forms part of the overall picture.

Its strength depends on how well it aligns with other available data. Supporting elements such as payment flows, contracts, correspondence, and a consistent administration significantly influence its evidential value.

Increased scrutiny for new or occasional customers

One frequently overlooked aspect is the position of the customer. When you supply goods to new or occasional customers, you are expected to apply a higher level of diligence. In these cases, a pickup statement generally carries less weight, particularly if additional supporting documentation is limited. Tax authorities will assess more critically whether, given the circumstances, you should have taken further verification steps.

Who actually collects the goods?

The pickup statement is primarily intended for situations where the customer itself, or its own staff, collects the goods. If a third-party carrier is involved, the expectation is that regular transport documentation, such as a CMR consignment note, will be available. If these documents are missing, this may weaken the credibility of the overall evidence, as it does not align with what would normally be expected in a professional transport scenario.

Identification of the person collecting the goods

Another key aspect is the identity of the person picking up the goods. Policy does not explicitly require a copy of a passport or ID document. However, the supplier must be able to demonstrate who collected the goods and that this person acted on behalf of the customer.

In practice, this means that a stronger file includes records such as the name of the individual, the company represented, the date of collection, and, where relevant, vehicle details. While not mandatory, retaining identification details can significantly strengthen your position, especially in higher-risk situations such as new customer relationships or large transactions.

The common pitfall: a false sense of security

A common misconception is that having a pickup statement in place is sufficient to secure the zero rate. In reality, the document must fit within a consistent and credible overall narrative. The customer, the transaction, and the logistics must all align logically, and your administration must support that story.

Particularly in ex works scenarios, where visibility over the transport is limited, we frequently see corrections of the zero VAT rate during audits.

How to stay in control

The key is not one document, but a well-structured process. Make sure you carefully assess your Incoterms, agree clearly with customers on documentation, properly identify the collecting party, and apply extra attention when you work with new or unfamiliar customers.

More information?

In most cases, the solution lies in the upfront design of your processes rather than fixing issues afterwards. If you would like to assess whether your current approach would stand up to scrutiny, or if you are looking for practical ways to reduce risk without compromising commercial flexibility, we are happy to help. Please contact our specialists.