Intra-community supply

Intra-Community supply

Intra-Community supply of goods means the sale of goods by a Belgian VAT-registered seller to a VAT-registered buyer (B2B) in another EU member state. There is a combination of conditions: on the one hand, the buyer must have a valid VAT number in his or her country; on the other hand, the goods must actually be shipped (the supplier must be able to prove this). If both conditions are met, the intra-Community supply can be exempt from VAT. The invoice then states ‘VAT reverse charged’.

Condition 1: validity of the buyer's VAT number

The buyer must therefore have a valid VAT number and you as supplier must check its validity. You can easily check VAT numbers from another EU member state via the European VIES database from within onFact. This takes one click, and onFact will indicate whether or not the VAT number provided is suitable for intra-Community trade. Be sure to carry out this check because (a) this transaction wíth VAT number must be stated in your intra-Community listing and (b) anyone who wrongly does not charge VAT will have to pay it themselves.

Condition 2: shipment to another EU member state

The seller must demonstrate that the goods have actually left the territory and have therefore been delivered abroad. This can be done in various ways;

• With transport documents such as a proof of carriage, signed shipping or delivery information, insurance costs, a transport invoice and/or a signed collection note
• With a destination document signed by the buyer

Don't take this lightly. If the VAT administration considers that you as seller wrongly applied the VAT exemption, you as seller will have to cough up the Belgian VAT due, plus interest and a fine.