Do you supply goods to a business customer in another EU country? If so, you may apply the 0% VAT rate (also known as an 0% intra-community supply of goods). However, this 0% VAT rate can only be used if all of the following conditions are met:
- The customer provides a valid VAT number from the country of destination
You can verify this number via the VIES-system of the European Commission. - You can prove that the goods have physically been transported to another EU country
This evidence should be documented in your books and records, such as CMRs, transport documents, track & trace information, or delivery confirmations. It is essential to maintain control over the transport. Delivery terms such as EXW (Ex Works) and FCA (Free Carrier) are considered risky, as the buyer arranges the transport. This often leaves you, as the supplier, without sufficient proof. If you do choose these terms, make sure to plan ahead on how to convincingly proof the transport. - You must periodically submit an EC Sales listing to the Dutch Tax Authorities
In this declaration, you report the customer’s VAT number and the value of the supply. Ensure that the reported value matches the value in your VAT return.
If you fail to meet any of the above conditions, you are not allowed to apply the 0% VAT rate. In that case, you must charge 9% or 21% VAT, depending on the nature of the goods.
Tip: Carefully document every step and align your delivery terms with your ability to provide proof of transport. This helps you avoid surprises during a tax audit.
Questions about your specific situation? Feel free to contact us – we’re happy to help!
