VAT while selling within the EU

Selling goods to countries within the EU

Selling to businesses

If you sell goods to another business and these goods are sent to another EU country, you do not charge VAT - if the customer has a valid VAT number.
Check if your customer has a VAT number

You may still deduct the VAT you yourself have paid on your related expenses (goods/services bought in specifically to make those sales).

If the customer does not have a valid VAT number, Estonian company must normally charge VAT on the sale at the rate applicable in Estonia, which in 2019 is 20%.

Selling to consumers

If you sell goods and send them to consumers in another EU country, you need to register there and charge VAT at the rate applicable in that country - unless the total value of your sales to that country in the year falls below the limit set by the country. Check VAT thresholds by EU countries here.

Check VAT rates in EU countries here.

Buying

If you buy and receive goods for business purposes from another EU country, you must account for the VAT on the transaction as if you had sold the goods yourself, at the applicable rate in your country.

Normally, you will later be able to deduct this amount.

There are several important exceptions to these basic rules.

Selling services to countries within the EU

Selling to businesses

You do not normally charge your customers VAT. Your customers will pay VAT on the services received at the applicable rate in their country (using the reverse charge procedure).

You may still deduct the VAT you yourself have paid on your related expenses (goods/services bought in specifically to supply that service).

Selling to consumers

You must normally charge your customers VAT at the rate that applies in your country, except for telecommunications, broadcasting and electronic services, which are always taxed in the country where the customer belongs (where a private person has a permanent address or usually resides or where a non-taxable person is established).

Buying

If you buy and receive services for business purposes from another EU country, you must account for the VAT on the transaction as if you had sold the services yourself, at the applicable rate in your country (using the reverse charge procedure, a system of self-assessment).

Normally, you will later be able to deduct this amount.

There are several important exceptions to these basic rules.

There are also places outside the EU where the EU VAT rules apply:

  • Monaco
  • Isle of Man
  • UK bases in Cyprus
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