Wholesale furniture takes the standard VAT rate in every EU member state, from 17% in Luxembourg to 27% in Hungary. Germany charges 19%, Spain 21%, France 20%, Italy 22%, and Poland 23%. Reduced rates for food, books, or passenger transport do not cover furniture. Intra-EU B2B sales qualify for 0% only when the seller has verified the buyer’s VAT number in VIES and holds proof that the goods left the country. Stock held in another member state usually requires a VAT registration there. Imports from the UK depend on the importer named on the customs declaration, and that same declaration controls whether you can deduct import VAT.

Domestic Sales Carry Local VAT

The seller charges the VAT rate of its own country on every domestic wholesale invoice. A German wholesaler invoices a German retailer at 19%, and a Polish wholesaler invoices a Polish retailer at 23%. The retailer deducts that VAT on its next return, so the cost is a cash-flow issue, not a margin issue. One edge case: installation or fitting services can fall under a different rate than the furniture itself. Some countries apply reduced rates to renovation work on older dwellings. Check the rate for the service separately and do not assume the furniture rate applies.

Intra-EU B2B Sales Qualify for 0% Only With Three Documents

The seller zero-rates an intra-EU B2B sale only after confirming the buyer’s VAT number is valid in VIES and collecting proof of transport. Three items must be in the file before you issue a 0% invoice:

1. A VIES check for the buyer’s VAT number, saved with the date. Run it before shipping, not at invoicing.
2. Two non-contradictory transport documents from different parties, such as a signed CMR and the carrier’s invoice. A single document from your own warehouse does not meet the standard.
3. A correct EC Sales List filing for the sale.

If any of the three is missing, the tax authority can reassess the sale at the local rate. The seller then owes that VAT out of its own margin. For example, a €10,000 pallet shipped from Germany to a Polish buyer with a valid Polish VAT number is invoiced at 0%, and the buyer self-assesses 23% Polish VAT through the reverse charge. If the VIES check fails, the seller must charge 19% German VAT.

Foreign Stock Usually Triggers VAT Registration

A wholesaler that stores its own furniture in another member state must register for VAT in that state. Moving your own stock across a border counts as a transfer. It is treated as a supply in the origin country and an acquisition in the destination country, and both require reporting. A consignment arrangement can avoid registration only if the buyer is already known and holds a valid VAT number in the destination country, and only if the destination country accepts call-off stock rules. Several countries apply these rules with extra conditions, so confirm with a local adviser before using them. Third-party logistics warehouses in the Netherlands, Poland, and Czechia create this registration obligation most often.

UK Imports Depend on Origin Statements and Importer Naming

For furniture entering the EU from the UK, the customs declaration decides both the duty and the VAT outcome. A valid statement on origin under the EU-UK Trade and Cooperation Agreement can reduce customs duty to 0%, but it has no effect on VAT. The member state of import charges VAT at its own standard rate on the customs value, and the importer named on the declaration is the party who owes that VAT. For furniture going from the EU to the UK, the exporter zero-rates the sale with export evidence, and the UK charges 20% import VAT on arrival.

Import VAT Deductions Require Your Name on the Declaration

The business that claims an import VAT deduction must appear as the importer or consignee on the customs declaration and must hold the customs release document. A freight forwarder’s name in that field blocks your deduction in most countries, even when you paid the VAT through the forwarder. Before each shipment, give the forwarder your VAT number and your exact legal name. After clearance, file the customs release document and the payment record together. Several countries, including the Netherlands and Belgium, allow deferred import VAT through a license or a special scheme. That removes the cash outlay, but the same naming requirement applies.

How Does Wholesale Furniture VAT Work in Europe?

Wholesale furniture sold in the EU carries the standard national VAT rate, from 17% in Luxembourg to 27% in Hungary, unless the sale qualifies for zero-rating as an intra-Community supply or an export.

Wholesale furniture carries the standard national VAT rate, from 17% in Luxembourg to 27% in Hungary, unless zero-rating applies.

A Polish manufacturer that sells €10,000 of tables to a Polish retailer charges 23% VAT (€2,300). The same manufacturer invoices a VAT-registered German buyer at 0% when the goods leave Poland and the paperwork is complete.

This article covers domestic sales, B2B sales to other EU states, exports outside the EU, and the documents that protect each zero-rate.

Which VAT Rate Applies to Wholesale Furniture?

Every EU member state applies its standard VAT rate to wholesale furniture. Chairs, tables, wardrobes, beds, and office furniture all fall under that rate. The same rate applies to solid wood furniture made from oak, walnut, mango, or teak, because the wood type doesn’t change the VAT category.

Standard rates differ by country:

• Luxembourg: 17%
• Germany: 19%
• Poland: 23%
• Hungary: 27%

Local reduced-rate lists don’t cover furniture, so you charge the standard rate on every domestic invoice.

Check the current rate on the national tax authority‘s website before you issue invoices, because member states change rates.

How Do You Zero-Rate B2B Furniture Sales to Another EU Country?

You zero-rate a B2B furniture sale to another EU country as an intra-Community supply when the buyer holds a valid VAT number and the goods physically move to that country.

Three conditions must all be met:

1. The buyer is VAT-registered in a member state other than yours.
2. You verify the buyer’s VAT number in VIES and print it on the invoice.
3. You hold proof that the goods left your country and arrived in the buyer’s country.

The zero-rate is a VAT exemption with right of deduction, so you still recover the input VAT you paid on materials and components.

The buyer self-accounts for VAT through the reverse charge at the rate of the buyer’s own country. A German buyer therefore reports 19% on the purchase and deducts the same amount in the same return.

Proof of transport means two separate documents from two independent parties. Typical pairs are a signed CMR consignment note and the carrier’s invoice, or a signed delivery receipt and a freight forwarder’s statement.

A single document that you produced yourself doesn’t meet the requirement. Keep the documents for the full retention period in your country, which is usually five to ten years.

If the buyer collects the goods in their own van, ask for a written statement from the buyer confirming transport to the destination country, and keep it with the other evidence.

What Happens When You Sell Furniture to a Customer in Your Own Country?

A domestic furniture sale carries your local VAT rate, whether the customer is a business or a consumer.

A Hungarian manufacturer that invoices a Budapest retailer charges 27%, and the retailer deducts that VAT in its own return. The reverse charge and zero-rating don’t apply, even when the buyer later ships the furniture abroad.

A customer that collects goods from your warehouse for export doesn’t change the VAT treatment of your invoice unless the transport evidence shows the goods left the country and you can document the delivery.

How Do You Handle Furniture Exports Outside the EU?

You zero-rate furniture exports outside the EU, including to the United Kingdom and Switzerland, when the goods leave the EU customs territory and you hold customs proof.

The required document is the export declaration with the exit confirmation from customs, issued through the electronic export system. The buyer’s VAT number isn’t required for an export, but the buyer’s name, address, and delivery destination must appear on the invoice.

Some limits apply. If the exit confirmation is missing, the tax authority treats the sale as a domestic sale, and you owe VAT at the national rate.

Goods shipped to Northern Ireland follow EU rules for goods, so the intra-Community rules above apply, not the export rules for Great Britain.

Which Filings and Checks Protect the Zero-Rate?

Three filings and checks protect the zero-rate: VIES verification, EC Sales Lists, and complete documents on file.

• VIES verification: Check each buyer’s VAT number in VIES before you issue the invoice, and save a dated screenshot or the consultation number. A number that was invalid on the invoice date can cancel the exemption.
• EC Sales Lists: Report each intra-Community supply to each buyer’s VAT number in the EC Sales List for the period. The filing frequency is monthly or quarterly, depending on your country and turnover.
• Document retention: Store the invoice, VIES check, transport documents, and customs exit confirmation together for each shipment.

Missing or incomplete documents void the exemption. In that case the tax authority assesses VAT at your national rate on the original sale.

On a €10,000 shipment from Poland, that adds €2,300 to your liability, and the buyer’s foreign reverse charge doesn’t offset it.

What Are Furniture VAT Rates by Country?

Furniture VAT equals the standard VAT rate of the country where the supply is taxed. Germany charges 19%, France 20%, Italy 22%, Spain 21%, the Netherlands 21%, Poland 23%, Sweden 25%, Hungary 27%, and the UK 20%. Each member state sets its own standard rate, so the EU doesn’t set the rate on a wholesale furniture invoice.

Standard VAT Rates for Furniture by Country

Each country taxes furniture at its standard VAT rate. These are the rates we invoice most often:

• Germany: 19%
• France: 20%
• Italy: 22%
• Spain: 21%
• Netherlands: 21%
• Poland: 23%
• Sweden: 25%
• Hungary: 27%
• United Kingdom: 20% (outside the EU)

We know of no market that applies a reduced VAT rate to ordinary furniture, so we never invoice a reduced rate on standard furniture orders. The same standard rate applies whether the invoice covers a rectangular dining table (36 x 72 inches) that seats 6-8 diners or a home office desk 48-60 inches wide.

VAT Exemptions on Cross-Border Furniture Sales

Zero-rating removes VAT from furniture we ship to a VAT-registered buyer in another EU member state. We invoice the supply at 0%, and the buyer accounts for the VAT through the reverse charge. This matters more to the final invoice amount than any difference between country rates.

Zero-rating requires two documents:

1. A valid buyer VAT ID, verified through VIES before we issue the invoice.
2. Proof of transport, such as a signed CMR, showing the furniture left our member state.

If either document is missing, we charge local VAT. Zero-rating covers shipments between EU member states only. The UK sits outside the EU, so UK orders follow separate export rules.

Confirming VAT Rates Before Invoicing

Check the current rate with the tax authority of the destination country before you issue each invoice. Member states change their standard rates, and an outdated rate on an invoice forces a corrected invoice or an unplanned VAT liability.

How Does Reverse Charge Work on Furniture Invoices?

Reverse charge moves the duty to account for VAT from the supplier to the buyer. The furniture invoice shows 0% VAT, and the buyer reports the VAT in the buyer’s own VAT return.

Reverse charge applies when we ship furniture from one EU member state to a VAT-registered business in another member state. Reverse charge doesn’t apply to sales to consumers, sales to buyers without a valid VAT number, or deliveries that stay inside our own country.

What We Print on a Reverse Charge Invoice

We print your valid VAT number, our VAT number, the net amount, 0% VAT, and the legal reference on every reverse charge invoice. The legal reference is Article 138 of Directive 2006/112/EC.

We add the words “Reverse charge” when your national rules require them. For example, an order of dining tables shipped from Poland to Germany shows €12,000 net, €0 VAT, and €12,000 total. We also describe each item clearly on the invoice line, such as a mid-century modern sideboard in teak or walnut, so the goods match the delivery documents.

We check your VAT number in VIES before we dispatch the goods. If VIES returns “invalid,” we charge local VAT until you send a corrected number.

How You Account for the VAT

You self-assess the VAT at your own country’s rate and report the amount in the same return period. You enter the amount as output tax and claim the same amount as input tax.

On the €12,000 German example, 19% VAT gives €2,280 in both boxes, so you pay €0 net.

The net result is zero only if you can deduct 100% of input VAT. If part of your business is VAT-exempt, you owe the non-deductible share.

Most member states, including Italy and Poland, also require Intrastat arrival declarations once your annual arrivals pass a national threshold. Each tax authority sets its own threshold, so check yours.

How You Verify the Invoice Before Accepting It

Before you accept the invoice, you check three items: our VAT number, the invoice wording, and the delivery evidence.

1. VAT number: Look up our VAT number in VIES and save the confirmation.
2. Wording: Confirm that the invoice shows both VAT numbers, 0% VAT, and the Article 138 reference.
3. Delivery evidence: Match the invoice to a signed CMR, a carrier confirmation, or a delivery receipt that shows the goods arrived in your member state.

These checks protect your VAT position. A tax authority can deny the 0% treatment when a VAT number is invalid or when no evidence shows the goods left the supplier’s country. The authority can then assess VAT at the local rate, plus interest.

When Do You Need Foreign VAT Registration?

When Do You Need Foreign VAT Registration?

A business registers for VAT in another EU member state in three situations: it stores goods in a warehouse there, it installs or assembles goods on site there, or the destination state offers no exemption for foreign sellers.

B2C distance sales above the €10,000 EU-wide annual threshold require destination-country VAT, but the One-Stop Shop (OSS) lets us report those sales through one registration in our home state.

B2B sales of goods to VAT-registered customers in another member state stay under reverse charge and need no foreign registration.

Do B2B Sales Require Foreign VAT Registration?

B2B sales of goods to VAT-registered customers in another member state normally need no foreign registration. We invoice at 0% VAT, the customer accounts for VAT under reverse charge, and we report the sale on our EC Sales List.

We check the customer’s VAT number in VIES before every first shipment and keep transport documents showing the goods left our member state. If the customer has no valid VAT number, we treat the sale as B2C.

When Do Distance Sales to Consumers Require Registration?

Distance sales to consumers require destination-country VAT once our cross-border B2C sales exceed €10,000 net in the current or previous calendar year. The threshold covers the total across all EU states, not each state separately.

Below €10,000, we charge our home-country VAT. Above €10,000, we register for the OSS in our home state and file one quarterly return that covers every destination state.

The OSS doesn’t cover sales from stock held abroad, B2B sales, or installation work.

Does Storing Stock Abroad Require Registration?

Storing stock in another member state requires registration there, with no threshold.

When we move furniture from our factory to a foreign warehouse, the tax authorities treat the move as a transfer of our own goods. We report an intra-EU supply in our home state and an acquisition in the destination state.

Every later sale from that warehouse is a domestic supply, so we charge local VAT and file local returns. The OSS doesn’t cover these sales.

The call-off stock simplification is the only exception. It applies when one named B2B customer with a VAT number has agreed to take the goods before shipment, and that customer withdraws them within 12 months.

We confirm that the destination state applies the simplification and keep the required stock register. Without a named customer, we register.

Does Installation or Assembly Require Registration?

Installation or assembly on site often requires registration, because many states tax these supplies where the installation happens.

A kitchen we ship and fit in a customer’s premises in another state counts as a local supply there. Some states shift the VAT to a VAT-registered customer through reverse charge, and others require us to register as the supplier.

We confirm the rule for the specific state and customer type before we issue the first invoice.

Do Local Thresholds Remove the Registration Duty?

Local thresholds rarely remove the duty. Few states exempt foreign sellers, and most require registration from the first taxable supply.

We check each state’s rules with its tax authority or a local adviser before the first shipment, because the answer differs by state and by type of supply.

What Happens When We Register Late?

Late registration makes the tax authority assess back-taxed VAT, interest, and penalties.

We also can’t add VAT to invoices already issued without the customer’s agreement, so the VAT comes out of our margin.

We register before the first shipment or installation, because correcting a missed registration costs more than registering on time.

How Does Furniture VAT Work With UK Imports?

Furniture imported from the UK triggers import VAT in the EU member state where customs releases the goods for free circulation, usually the first member state of entry. The importer pays that country’s VAT rate on the customs value plus duties and transport costs.

In the Netherlands the rate is 21%. The duty is 0% only when the furniture qualifies as UK-origin under the UK-EU Trade and Cooperation Agreement (TCA). Otherwise, standard EU duty applies, between 0% and 5.6% depending on the CN code.

Who Assesses Import VAT on UK Furniture

The customs authority of the first member state of entry assesses import VAT when the UK furniture is released for free circulation. The UK is a third country, so every shipment needs an import declaration. The exception is goods moving under transit to another member state, where the destination state assesses the VAT.

We need an EORI number to file the declaration. We also need either a customs broker or an indirect representative to clear the goods. A broker acting as indirect representative becomes liable for the customs debt alongside us, so brokers often ask for a guarantee or deposit.

How the TCA Affects Duty on UK Furniture

The TCA sets duty on UK furniture to 0% only when the goods meet the preferential rules of origin. The supplier must issue a statement on origin on the invoice.

We can also rely on our own knowledge of the origin, but only if we hold the supporting production records. Furniture assembled in the UK from mostly non-UK components may fail the origin rules. In that case the standard EU duty applies, and customs can demand repayment if the origin claim is later rejected.

What the VAT Base Includes

The VAT base equals the customs value, plus duties and other charges, plus transport costs to the first EU destination. Here is a worked example:

• Customs value, including freight to the EU border: €10,000
• Duty at 2.7% (no preferential origin): €270
• Inland transport from Rotterdam to our warehouse in Venlo: €300
• VAT base: €10,570
• Dutch VAT at 21%: €2,219.70

If the supplier’s origin statement is valid, the duty drops to €0, the base falls to €10,300, and the VAT falls to €2,163.

How Postponed Accounting Works for UK Furniture

Postponed accounting lets us report import VAT on our own VAT return instead of paying it to customs at clearance. The Netherlands offers this through the Article 23 permit, which we must hold before we file the first declaration.

France and Belgium also offer postponed accounting. Germany does not. German importers pay import VAT through the customs deferment account. We confirm the rules of the entry state before we choose the port.

Which Records Support the Input VAT Deduction

We keep the customs declaration with its MRN, the broker’s invoice, and proof of VAT payment. Tax auditors reject input VAT claims that lack the customs declaration. Under postponed accounting, no bank payment exists, so we keep the import entry and the matching line of the VAT return instead.

We also keep the supplier’s origin statement for every shipment where we claimed 0% duty, because customs can audit the origin claim after clearance.

How Do You Reclaim Input VAT Correctly?

How Do You Reclaim Input VAT on Imported UK Furniture?

We reclaim import VAT on UK furniture through our regular VAT return, in the period the import VAT becomes deductible. The deduction requires three documents: the customs entry naming our company as importer or declarant, proof of payment, and the supplier’s commercial invoice. We keep these documents for 6 to 8 years, depending on the country.

Without our company named on the customs entry, the tax authority denies the deduction.

Which documents support the input VAT deduction?

We support each input VAT deduction with the customs entry, the proof of payment, and the commercial invoice, filed together under the customs entry’s MRN. The customs entry must show our company name and VAT number.

If the entry names the freight forwarder or the UK supplier, we can’t deduct, and correcting the entry afterward requires approval from the customs office. We therefore give the forwarder our EORI and VAT number before each shipment leaves the UK.

How does each country treat import VAT on the return?

Each country uses a different mechanism, so we apply the local rule per entity.

• Netherlands: We hold an Article 23 licence. The licence lets us defer payment of import VAT. We report the import VAT and deduct it on the same return, so no cash leaves our account.
• Ireland: We use postponed accounting. We report the import VAT on the VAT3 return and deduct it on the same return.
• France: We self-assess import VAT on the CA3 return and deduct it on that same CA3.
• Germany: We deduct Einfuhrumsatzsteuer in the period the customs assessment is issued, not the period we pay or receive the furniture. A deduction booked in the wrong period requires a correction.

Which retention periods apply?

We keep import VAT documents for 6 years in France and Ireland, 7 years in the Netherlands, and 8 years in Germany.

We apply the longest period of any country where we file, so one retention rule covers all customs entries. Auditors reject a deduction when any of the three documents is missing, even if the VAT amount is correct.

What deadlines limit corrections?

Correction windows run from two to five years, depending on the country.

• Ireland: 4 years.
• Germany: 4 years after the end of the calendar year in which the return was due.
• Netherlands: 5 years.
• France: until 31 December of the second year after the year the right to deduct arose.

When we miss the window, we lose the deduction permanently. We track the earliest expiry date for every open customs entry.

How do we reconcile customs data against the ledger?

Each month, our accounts team matches every MRN in the customs data to an import VAT line in the ledger.

For each match, we check three fields: the importer name, the VAT amount, and the period. We resolve every mismatch before we file the return. This monthly check catches entries naming the wrong importer while the correction windows are still open.