- When selling goods within the EU, VAT treatment depends on the nature of the transaction. Sales to foreign companies are exempt from VAT under intra-Community supply rules, provided specific conditions are met, such as obtaining the customer’s VAT number and maintaining proof of transport.
- For sales to private individuals in the EU, VAT is due in the customer’s country under the distance selling scheme, allowing sellers to declare all sales in a single VAT return since July 2021, simplifying compliance across multiple jurisdictions.
- Businesses transferring stock to another EU country typically need to register for VAT there, although a simplified scheme exists to avoid this requirement. Additionally, when acquiring goods from a foreign supplier without VAT, the buyer is responsible for collecting and remitting VAT in their country, highlighting the importance of maintaining accurate documentation and understanding VAT obligations to avoid penalties.
Source vatdesk.eu
