Duties and Taxes Process
Below are examples of the financial process that takes place between European Merchants and both European and Non-European customers,
Example: Intra-EU “distance selling” to Germany (VAT = 19%)
EU Merchant – EU Customer
Product price in Europe = €121 (€100 + 21% VAT) - exported into the EU (Germany)
Shipping cost €10 , charged to customer €5 (shipping subsidy €5)
Net product sale for Merchant: €100
Net after shipping subsidy: €95
Example: Deduct Dutch VAT outside the EU
Dutch Merchant – Non-EU Customer
Product price in Europe = €121 (€100 + 21% VAT) - exported out of the EU
Shipping cost €10 , charged to customer €5 (shipping subsidy €5)
Net product sale for Merchant: €100
Net after shipping subsidy: €95
Note
While the sale is a domestic sale between two Dutch entities, since the final destination of the goods is outside of the EU, a VAT exemption applies.
Example: “Pocket” VAT outside the EU
Dutch Merchant – Non-EU Customer
Product price in Europe = €121 (€100 + 21% VAT) - exported out of the EU
Shipping cost €10 , charged to customer €5 (shipping subsidy €5)
Net product sale for Merchant: €121
Net after shipping subsidy: €116
Note
While the sale is a domestic sale between two Dutch entities, since the final destination of the goods is outside of the EU, a VAT exemption applies.