This article explains different types of goods movements within and outside the European Union and their VAT implications.

📍 Intra-EU Acquisition (IEA) of Goods

An Intra-EU Acquisition (IEA) occurs when a business in one EU Member State purchases goods from a business in another Member State.

Key rules:

• The purchaser must self-account for VAT under the reverse charge mechanism.
• The supplier treats the sale as an Intra-EU Supply (IES) and does not charge VAT.
• VAT is accounted for in the purchaser’s VAT return at the applicable rate of their country.
• If eligible, the purchaser can reclaim the VAT in the same VAT return.
• The purchaser must account for VAT on any further sale of the goods.

Example: A German company buys goods from a Spanish company. The Spanish seller confirms the buyer’s VIES registration and sells the goods VAT-free. The German buyer applies the reverse charge to self-account for VAT.

📍 Intra-EU Supply (IES) of Goods

An Intra-EU Supply (IES) occurs when a business in one EU country sells goods to a business in another EU country.

Key rules:

• The customer must be VAT-registered in another Member State.
• The supplier must obtain and verify the customer’s VAT number (including country prefix).
• The supplier must state both VAT numbers (buyer & seller) on the invoice.
• The goods must be transported to another EU country.
• If all conditions are met, the sale is VAT-exempt.

❗ If VAT exemption conditions are not met:

• The supplier must charge their domestic VAT.
• If the conditions are later proven, the buyer can reclaim the VAT and the supplier can adjust their VAT return.

Example: A French company sells goods to an Italian company and ships them from France to Italy. After verifying the Italian buyer’s VIES registration, the seller does not charge VAT.

📍 Determining the Place of Taxation

Example 1: A Spanish manufacturer sells a machine inside Spain to a German buyer. Spanish VAT applies.

Example 2: A German supplier transports goods from Hamburg to Berlin. German VAT applies as the transport starts in Germany.

📍 Importation of Goods into the EU from Non-EU Countries

When goods enter the EU from a non-EU country, VAT is determined by the entry point into the EU.

VAT rules for imports:

• VAT is due in the country where the goods enter the EU.
• If the goods enter via a customs procedure, VAT is due where they exit the procedure.

Example 1: Dutch VAT applies to oil from Russia arriving in Rotterdam.

Example 2: Goods enter Poland under a transit procedure but are cleared in the Netherlands—VAT is due in the Netherlands.

📍 Exporting Goods from the EU to Non-EU Countries

Exports refer to shipping goods outside the European Union.

Key points:

• Most exports are VAT-exempt.
• Some goods (e.g., agricultural products, cultural objects) require special permits.
• Before exporting, you must submit an export declaration to customs.

VAT exemption applies if:

• The goods are transported outside the EU VAT area by the supplier.
• The goods are transported outside the EU VAT area by a non-EU buyer.