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Business Tips

In which countries does VAT apply?

VAT or Value Added Tax is a sales tax operated in the EU.  Each country gives a different name for this tax, but the rules are relatively harmonised across applicable countries and territories.  There are differing rules on specific items, but the general principals remain the same.

All UK businesses needed to be aware of the complexity of VAT issues.  This is particularly the case for transactions that occur internationally.  In these situations, the rules can be different.

A full list of countries and territories where VAT applies can be found here:

Countries and territories outside the EC fiscal (VAT) area

  • Austria
  • Belgium
  • Bulgaria
  • Croatia
  • Cyprus, including the British Sovereign Base Areas of Akrotiri and Dhekelia (but          excluding the United Nations buffer zone and the part of Cyprus to the north of the        buffer zone, where the Republic of Cyprus does not exercise effective control)
  • Czech Republic
  • Denmark, except the Faroe Islands and Greenland
  • Estonia
  • Finland
  • France, including Monaco
  • Germany, except Busingen and the Isle of Heligoland
  • Greece
  • Hungary
  • The Republic of Ireland
  • Italy, except the communes of Livigno and Campione d’Italia and the Italian waters of    Lake Lugano
  • Latvia
  • Lithuania
  • Luxembourg
  • Malta
  • The Netherlands
  • Poland
  • Portugal, including the Azores and Madeira
  • Romania
  • Slovakia
  • Spain, including the Balearic Islands but excluding Ceuta and Melilla
  • Slovenia
  • Sweden
  • United Kingdom and the Isle of Man.

Countries and territories outside the EC fiscal (VAT) area

  • The Aland Islands
  • Andorra
  • The Canary Islands
  • The Channel Islands
  • The outermost regions of France (Guadeloupe, French Guiana, Martinique, Mayotte,     Réunion and Saint-Martin (French Republic))
  • Gibraltar
  • Mount Athos
  • San Marino
  • The Vatican City

For more information on VAT or to obtain specific VAT advice, please contact Wisteria’s tax department on 020 8429 9245.