How is the billing done and how is the VAT applied on an international sale ?

You want to develop your brand internationally but you don't know the VAT impacts ? Here are the main points to keep in mind :

You are a brand in an EU country and sell to a country outside of the EU or vice versa. You must then charge your order excluding VAT as you are under the VAT export regime.

As a seller, you should know that it is up to the buyer to pay the VAT in his country. The taxation is carried out when the goods pass through customs. The latter will then be able to deduct the VAT when importing as long as he meets the formal and substantive conditions for exercising the right to deduct. 

Whether your company is a taxable person and liable for VAT, or whether you are a micro-entrepreneur benefiting from a basic exemption from VAT, you will generally have to issue an invoice without VAT when you invoice international customers.

Mandatory information to be included on my export invoice: Generally speaking, except for your EORI number, there is no additional information to include on an invoice to a foreign customer. As long as you have all the required information in your country, you will be in the clear.

Documents to include on the outside of your package:

  • CN22/ CN23 form
  • 3 copies of the proforma invoice
  • Certificate of origin of the goods