EU VAT Guide for Resellers and Trade Partners
1. Overview of VAT in the European Union
The European Union operates as a single market, enabling the free movement of goods between member states without customs duties or border checks. For intra-EU supplies, VAT is governed by the EU VAT Directive and is applied based on the customer’s delivery destination, not the location of the fulfilment centre.
Global Vision Direct Ltd t/a Artisan Furniture operates EU fulfilment centres in Germany and Spain. All EU sales are conducted on a business-to-business (B2B) basis. However, for VAT purposes only, customers who do not provide a valid EU VAT registration number are treated as non-taxable persons (B2C) in accordance with EU VAT legislation.
All prices displayed are exclusive of VAT. The applicable VAT rate is calculated and applied at checkout based on the delivery address and VAT status of the customer.
2. Fulfilment from Magdeburg, Germany
Orders fulfilled from the Magdeburg facility are dispatched freely within the European Union without customs formalities.
Germany → Germany:
German VAT at 19% is applied.
Germany → other EU member states (customers without a valid VAT number):
VAT is charged at the destination country’s VAT rate under the One-Stop Shop (OSS) regime.
Germany → EU VAT-registered businesses:
Supplies are invoiced at 0% VAT under the intra-EU reverse-charge mechanism, subject to VAT number validation
3. Fulfillment from Madrid, Spain
Orders fulfilled from the Madrid facility operate in parallel with the German fulfilment centre and benefit from frictionless intra-EU movement of goods.
Spain → Spain:
Spanish VAT at 21% (or the prevailing statutory rate) is applied.
Spain → other EU member states (customers without a valid VAT number):
VAT is charged at the destination country’s VAT rate under the OSS regime.
Spain → EU VAT-registered businesses:
Supplies are invoiced at 0% VAT under the intra-EU reverse-charge mechanism, subject to VAT number validation.
The applicable VAT rate is determined solely by the delivery destination and VAT status of the customer, irrespective of whether goods are dispatched from Germany or Spain.
4. VAT Classification of Customers
Artisan Furniture operates exclusively under B2B commercial terms.
For VAT purposes only:
Customers providing a valid EU VAT registration number are treated as taxable persons (B2B).
Customers without a valid EU VAT number are treated as non-taxable persons (B2C) for VAT calculation and reporting purposes.
This VAT classification applies solely for tax purposes and does not alter the contractual B2B relationship, trigger consumer protection legislation, or confer consumer rights under civil or commercial law.
All transactions remain governed by Artisan Furniture’s B2B terms and conditions.
5. Intra-EU Movement of Goods
Transfers of stock between Germany and Spain constitute intra-EU movements of own goods and do not attract customs duties or border controls.
For customer deliveries:
VAT follows destination-based taxation.
B2B intra-EU supplies are zero-rated under reverse charge.
Non-VAT-registered customers are charged destination VAT via OSS.
No customs declarations are required for EU-to-EU shipments.
6. Exports Outside the European Union and EFTA Countries
Under EU VAT legislation, goods exported outside the European Union may be zero-rated, provided valid proof of export is retained.
As a matter of operational policy, Artisan Furniture ships outside the EU only to the following EFTA countries:
- Switzerland
- Norway
- Iceland
- Liechtenstein
Orders delivered to EFTA countries are invoiced at 0% EU VAT. Any import VAT, customs duties, or local taxes imposed by the destination country are payable by the customer directly to the local customs authority.
If delivery is made to an EU address (including freight forwarders), VAT remains applicable, as the goods do not exit the EU under our control.
7. Invoicing and Compliance
VAT invoices clearly state the country of fulfilment, delivery destination, applied VAT rate, and applicable VAT registration number (Germany or Spain).
Separate VAT registrations are maintained in Germany and Spain. Cross-border EU VAT is reported via the OSS system in accordance with EU regulations.
8. Summary Table of VAT Treatment
Route | Customer VAT Status | VAT Applied | Notes |
Germany → Germany | Any | 19% German VAT | Domestic supply |
Spain → Spain | Any | 21% Spanish VAT | Domestic supply |
EU → EU | VAT registered | 0% VAT | Reverse charge |
EU → EU | Not VAT registered | Destination VAT | OSS applies |
EU → EFTA (CH, NO, IS, LI) | Any | 0% EU VAT | Import VAT payable by customer |
9. Legal Disclaimer
This document is provided strictly for general informational purposes only and does not constitute legal, tax, or professional advice. Global Vision Direct Ltd t/a Artisan Furniture makes no representations or warranties regarding the accuracy or ongoing validity of the information contained herein.
VAT rules are subject to change and may vary depending on individual circumstances. Customers are strongly advised to seek independent professional advice and confirm their obligations with the relevant tax authorities.
Published January 2025 | Effective from January 2025 until Superseded or Amended
