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Below are examples of the financial process that takes place between European Merchants and both European and Non-European customers, Example: Intra-EU “distance selling” to Germany (VAT = 19%) EU Merchant – EU Customer
  • Product price in Europe = €121 (€100 + 21% VAT) - exported into the EU (Germany)
  • Shipping cost €10 , charged to customer €5 (shipping subsidy €5)
Net product sale for Merchant: €100 Net after shipping subsidy: €95 Example: Deduct Dutch VAT outside the EU Dutch Merchant – Non-EU Customer
  • Product price in Europe = €121 (€100 + 21% VAT) - exported out of the EU
  • Shipping cost €10 , charged to customer €5 (shipping subsidy €5)
Net product sale for Merchant: €100 Net after shipping subsidy: €95
While the sale is a domestic sale between two Dutch entities, since the final destination of the goods is outside of the EU, a VAT exemption applies.
Example: “Pocket” VAT outside the EU Dutch Merchant – Non-EU Customer
  • Product price in Europe = €121 (€100 + 21% VAT) - exported out of the EU
  • Shipping cost €10 , charged to customer €5 (shipping subsidy €5)
Net product sale for Merchant: €121 Net after shipping subsidy: €116
While the sale is a domestic sale between two Dutch entities, since the final destination of the goods is outside of the EU, a VAT exemption applies.