How VAT Works on Goods Supplied to Another EU Country
Supplying goods to a VAT-registered business in another EU state is exempt from Czech VAT if conditions are met — the customer self-accounts in their state. The keys: the customer's valid VAT ID and proof of transport.
Selling goods to a business registered for VAT in another member state is an intra-Community supply — if conditions are met, it is exempt from Czech VAT with the right to deduct, and the customer declares acquisition tax in their own state.
Conditions for the exemption
- The customer has a valid VAT ID issued by another member state and has given it to you.
- The goods were actually transported to another member state (and you can prove it — transport documents, carrier confirmation).
- You report the supply in the EC Sales List with the customer's correct VAT ID.
Since the "quick fixes", the customer's valid VAT ID is a substantive condition — without it there is no exemption, even if the goods demonstrably left the country.
Practical example
A Czech company sells a machine for CZK 800,000 to a German payer with VAT ID DE811907980. It verifies the ID in VIES, keeps the transport documents, issues the invoice without VAT referencing the exemption, and reports the supply in the EC Sales List. The German customer declares the acquisition in Germany (reverse charge).
When the exemption does not apply
- The customer is a final consumer (B2C) → it is a distance sale; you apply the customer state's rates and possibly the OSS.
- The customer's VAT ID is invalid or cancelled → the supply is taxable with Czech VAT.
Verify the customer's VAT ID before every major delivery, not just at onboarding — registrations get cancelled. A VIES check takes seconds and the result can be saved as evidence.