Export exemption
VAT & taxation
Principles for classifying a product in the Harmonized System.
Export Exemption
The export exemption is a tax advantage allowing companies to sell goods outside the European Union without applying VAT. This mechanism is crucial for companies seeking to be competitive in the international market, as it reduces the final cost for the foreign buyer.
How does it work?
When a company exports goods outside the EU, it can invoice its products without VAT, provided it proves that the goods have indeed left the EU territory. This proof is generally provided by customs documents such as the SAD (Single Administrative Document) or transport evidence.
Practical Tips
- Rigorous documentation: Ensure you keep all documents proving the effective export of goods. This includes invoices, transport documents, and customs declarations.
- Verification of conditions: Each country may have specific rules regarding VAT exemption. It is therefore essential to check local requirements to avoid tax complications.
- Consultation with experts: If you are new to exporting, it may be wise to consult a customs expert or tax advisor to ensure you comply with all legal obligations.
Benefits
The export exemption not only reduces costs for international customers but also enhances the competitiveness of companies in the global market. By optimizing your export processes, you can expand your customer base and increase your international sales.
For more information on customs procedures and tax exemptions, check out our comprehensive customs glossary.