VAT Considerations when Starting an International Transport Business

For EU transactions, select your activity:

For non-EU transactions, select your activity:

Selling goods to EU businesses

When selling goods to EU businesses, VAT isn’t charged if the buyer has a valid EU VAT number. However, you can still reclaim VAT on related expenses.

If the buyer lacks a valid EU VAT number, apply your country’s VAT rate.

Verify VAT numbers using the official EU VAT number validation tool.

Selling goods to EU consumers

A €10,000 threshold applies to EU distance sales. Below this, VAT may apply in your country for certain goods and services.

Online sellers can use a one-stop-shop for EU-wide VAT declarations on distance sales.

Note: Special rules apply to excise goods and new transport means.

Selling services to EU businesses

Generally, you don’t charge VAT when selling services to EU businesses. The customer pays VAT in their country through reverse charging.

You can still reclaim VAT on related expenses.

Selling services to EU consumers

Usually, charge VAT at your country’s rate. However, for telecommunications, broadcasting, and electronic services, apply the customer’s country rate.

Be aware of exceptions to these general rules.

Buying goods from EU countries

When purchasing goods from another EU country, declare and pay VAT as if you sold the goods, using your country’s rate.

This VAT can typically be reclaimed in your next VAT declaration.

Note that some exceptions exist to this general rule.

Buying services from EU countries

For services bought from other EU countries, declare and pay VAT as if you provided the service, using your country’s rate and the reverse charge method.

This VAT is usually reclaimable in your next VAT declaration.

Be aware of potential exceptions to this rule.

Selling goods outside the EU

When selling goods to non-EU customers, you don’t charge VAT. However, you can still reclaim VAT on related expenses.

Selling services outside the EU

Generally, no VAT is charged on services provided to non-EU customers. However, if the service is used within the EU, that country may charge VAT.

You can still reclaim VAT on related expenses.

Buying goods from outside the EU

When importing goods from non-EU suppliers, VAT is typically paid at the point of import.

If you make taxable sales, this VAT can usually be reclaimed in your next VAT declaration.

Buying services from outside the EU

For services received from non-EU providers, pay VAT at your country’s rate as if you provided the service yourself, using the reverse charge method.

This VAT can typically be reclaimed in your next VAT declaration.

Special Territories and Exceptions

While these VAT rules apply across the EU, certain territories are exempt, including:

• Åland Islands
• French Overseas Departments
• Büsingen
• Heligoland
• Mount Athos
• Campione d’Italia
• Italian waters of Lake Lugano
• Livigno
• Canary Islands
• Ceuta and Melilla

Interestingly, EU VAT rules do apply to Monaco, despite it being outside the EU.