Transportation services fall within the category of activities involving the transport of passengers and goods from one location to another. Depending on the place of departure, transit, and arrival, the tax status of these services changes. It is also important to consider who the recipient and the provider of the services are. This paper analyzes the value-added tax (VAT) system in the Republic of Croatia, with an emphasis on the tax status of transportation services for goods and passengers when the transportation is performed by a Croatian taxpayer, both domestically and internationally. The paper provides an overview of the tax status of transportation services within and outside the European Union, as well as in third countries. Additionally, the paper offers a detailed review of the types of transportation for goods and passengers, encompassing road, rail, air, maritime, and multimodal transportation. Each chapter of this paper outlines the specificities of passenger and goods transportation and the particularities of transportation in countries with different tax jurisdictions. The simplified One-Stop-Shop system, including the registration process, allocation, and payment of VAT obligations for services performed within the European Union, is explained in detail. By analyzing different forms of transportation, the paper explains how domestic and foreign taxpayers should proceed and what tax status should be applied to certain transactions. The paper also provides an analysis of the transportation services performed and the VAT obligations for the transportation services of goods and passengers during the period from 2021 to 2023.