If the company directly sells goods or services to consumers in an EU Member State, it generally has to register and invoice VAT at the rate applicable at the place of destination of the asset or service provider. It should be noted, however, that certain intra-Community transactions are subject to specific rules.
If the goods are sold to another company located in another EU country, invoicing will be without VAT if this customer has a valid VAT identification number, under the reverse charge mechanism charge). There will be a reversal of the person liable for VAT.
For transactions with customers outside the EU, VAT may not be charged. A company that purchases goods from a supplier located in a non-EU Member State can pay the tax that applies to it and deduct it in its next tax return.
Cross-border VAT
thus differs in application according to the different operations carried out but also according to the co-contracting countries.