VAT and Drop-Shipping in Europe

A non-EU company shipping products in one or between the EU countries is "drop-shipping" within EU. Most likely, VAT will be charged on the invoice from the European vendor regardless of where the buyer is located.

In order for the non-EU resident company to get the VAT refund, VAT registration is usually necessary. The non-EU company must register in one of the EU countries, and is required to charge VAT to the buyer of the products regardless of where they are located. If VAT registration does not take place, the VAT incurred from the European vendor can, in most cases, not be reclaimed.

There are many complex VAT rules relating to drop-shipping in Europe. Contact Euro VAT Refund for the most favorable rules for your company.