There are two categories under ‘Other exemptions’:
- Exemptions relating to importation
- Exemptions for intra-EU acquisitions of goods
Exemptions relating to importation
It is a fundamental rule of EU VAT that VAT is due on the release for free circulation of goods imported into the customs territory of the Union from a third territory or from outside the customs territory of the Union altogether.
However, in order to maintain parity and not to penalise the importation of goods where the domestic supply of those goods would be exempt in the same circumstances, the corresponding importation is also exempt without the right to deduct.
| Case | Conditions | Example |
|---|---|---|
| Case 1 The final importation of goods into EU country 1: (Article 143(1)(a) VAT Directive) | Matching supply: where the supply of those goods by a business would be exempt in all circumstances in EU country 1 | The supply of human organs is exempt under Article 132 of the VAT Directive as an activity in the public interest. Accordingly, the final importation of human organs is also exempt. |
| Case 2 Personal imports: the final importation of goods (Article 143(1)(b) VAT Directive) | A) free of excise duty and VAT in travellers’ personal luggage B) free of VAT as personal property | |
| Case 3 The final importation of goods in free circulation: the final importation of goods in free circulation from a third territory forming part of the customs territory of the EU.(Article 143(1)(c) VAT Directive) | Where the goods would be exempt if they had entered the EU as goods not in free circulation | |
Case 4: the importation of goods in cases where the VAT on the corresponding supply (distance sale) is to be declared under the Import One-Stop Shop (IOSS) special scheme. (Article 143(1)(ca), VAT Directive) |
| Non-excisable goods not exceeding EUR 150 that are sold by an IOSS-registered trader and are dispatched or transported from a territory outside the EU, to a consumer in EU. The IOSS-registered trader will have already collected the VAT at the time of purchase and, therefore, the corresponding import is exempt. |
Case 5 Importation of goods en route to another EU country: the importation of goods dispatched or transported from a third territory or a third country into an EU country:
(Article 143(1)(d) VAT Directive) |
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Case 6 Reimportation after temporary export: the reimportation of goods by the person who exported them (Article 143(1)(e) VAT Directive) |
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Case 7 Diplomatic imports: the importation of goods (Article 143(1)(f) VAT Directive) | The goods must be exempt from customs duties and be imported under diplomatic and consular arrangements | |
Case 8 International bodies: the importation of goods into EU country 1 (Article 143(1)(fa)-(ga),VAT Directive) | A) Carried out by:
Conditions:
B) Carried out by:
Conditions:
C) Carried out by:
Conditions:
D) Carried out by:
Conditions: The goods must be for:
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Case 9 NATO forces: the importation of goods into EU countries that are also NATO members (Article 143(1)(h)VAT Directive) | Carried out by:
Conditions: The goods must be for:
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| Case 10 UK forces in Cyprus: the importation of goods into Cyprus by the armed forces of the United Kingdom established there pursuant to the Treaty of Establishment of the Republic of Cyprus of 16 August 1960 (Article 143(1)(i) VAT Directive) | The goods must be for:
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| Case 11 Fishing catches: the importation into ports by sea-fishing undertakings of their catches (Article 143(1)(j) VAT Directive) |
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Case 12 Central bank gold: the importation of gold (Article 143(1)(k) VAT Directive) | The importation must be carried out by central banks | |
Case 13 Natural gas etc: A) Gas (Article 143(1)(l) VAT Directive) B) Electricity (Article 143(1)(l) VAT Directive) C) Heat or cooling energy (Article 143(1)(l) VAT Directive) | A) Gas: Through:
Or fed in from a vessel transporting gas into:
C) Heat: Through heating or cooling networks
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Case 14 Avoidance of double taxation : supply of services related to the importation of goods Includes transport services connected with the importation of movable property (e.g. furniture) carried out as part of a change of residence (Article 46 of the Implementing Regulation (EU) 282/2011). | The value of those services is included in the taxable amount of the goods (and hence in the amount subject to import VAT) | Note: Unlike Cases 1 to 13, the exemption in Case 14 is an exemption with the right to deduct. Example: Transport costs that have already been included in the taxable amount of the goods that are imported. Where such costs have already been included in the taxable amount, this exemption is applied to ensure that the same services are not taxed twice, i.e., once on importation and once again because the place of supply of the service is in the EU. |
Exemptions for intra-EU acquisitions of goods
It is a fundamental rule of EU VAT that VAT is due on most intra-EU acquisitions of goods. This due amount is deductible as input VAT to the extent the goods are used for the purpose of making taxed transactions.
However, in order to treat the different types of taxable transactions in the same way, where the domestic supply or importation of those goods would be exempt in the same circumstances, the corresponding acquisitions are also exempt.
| Case | Matching supply/import | Circumstances (when applicatble) |
|---|---|---|
| Case 1 The intra-EU acquisition of goods in EU country 1: Article 140(a) VAT Directive) | Matching supply: Where the supply of those goods by a business would be exempt in all circumstances in EU country 1 | |
| Case 2 The intra-EU acquisition of goods in EU country: Article 140(b) VAT Directive) | Matching import: Where the importation of those goods into EU country 1 would be exempt as:
| |
| Case 3 The intra-EU acquisition of goods in EU country 1:(Article 140(c) VAT Directive) | Carried out by: A business not established in EU country 1 | Who is in all circumstances entitled to full reimbursement of the VAT due because:
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Legal texts
Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax