VAT

Intra-community supply

A sale of goods transported from one EU member state to a VAT-registered customer in another. Exempt at origin, taxed as an acquisition at destination.

What Intra-community supply means

When goods are dispatched from one member state to a business customer in another, the supply is exempt from VAT in the country of departure and the customer reports an intra-community acquisition in its own country, paying VAT there under the reverse charge. This is how the EU avoids double taxation on trade between member states.

The exemption is conditional: the customer must hold a valid VAT ID from another member state, the supplier must report the sale in the EC sales list, and the supplier must be able to prove that the goods left the country, for example with transport documents. Since the 2020 quick fixes these conditions are substantive, not formal, so a missing VAT ID or missing proof means VAT becomes due at origin.

Related terms

EC sales list (recapitulative statement)A periodic report of sales to VAT-registered customers in other EU countries, listing each customer's VAT ID and the total value.VIES (VAT Information Exchange System)The European Commission's system for checking whether an EU VAT ID is valid. Free to use and required evidence for zero-rated cross-border supplies.VAT identification numberThe number a tax authority assigns to a VAT-registered business. Starts with the country code and is required on invoices and for cross-border trade.Reverse chargeA VAT mechanism where the customer, not the supplier, accounts for the tax. Used for cross-border B2B services and some domestic sectors.VAT (value added tax)A consumption tax charged on most goods and services in every EU country, collected by businesses and paid to the tax authority.

This entry is general information, not tax advice. Rules change; check the current position with your adviser or the tax authority of your country.

Back to the full glossary

Kontevia applies these rules for you

Rates, thresholds and e-invoicing formats come from the jurisdiction data of your country. You send the document, Kontevia books it and keeps the VAT summary ready.

Start in early access