Explain how the intra-Community supplies work.

General

A Dutch entrepreneur who provides goods to a customer in another EU Member State may apply the zero VAT rating if the following conditions are met:

– The goods must physically leave the Netherlands.
– The customer must have a VAT identification number.

You must also indicate on your invoice, usually with the addition ‘Tax transferred to buyer’.
The customer is liable for tax in the destination state as a result of the acquisition. It is imperative that you request and verify the VAT identification number of all customers in other EU countries with the Dutch Tax Authorities.

Check your VAT identification number.

This will prevent you from incorrectly applying the VAT zero rate. Any errors may lead to issues with the Dutch Tax Authorities regarding VAT recovery! It is recommended to request written confirmation from the Inland Revenue to audit VAT numbers.