VAT refunds for non-EU businesses
Businesses not based in the European Union who incur VAT in connection with their activities in an EU country where they do not habitually supply goods/services (and so are not required to register for VAT) are entitled to deduct that VAT.
This ‘deduction’ is made by means of a refund from the EU country where they paid the VAT. You can read more here.
Below you will find the rules for how Gelato will be charging VAT within Europe.
Shipping from the EU to a country outside of the EU
When shipping material produced in an EU country to a customer located in a country outside the EU is treated as exports of goods from the EU and therefore VAT exempt.
VAT on cross border transactions within the EU
- If you provide a valid EU VAT ID, supplies are treated as intra-community sales and are subject to zero-rated VAT, unless the VAT ID provided is registered in the country where we ship the printed materials from, as this would be considered a domestic sale. See below for the handling in the countries where Gelato is registered.
Note: Your EU VAT ID is added to your billing address in Gelato API. You should normally be able to reclaim VAT payments from your tax authorities.
- If no valid EU VAT ID is provided with your billing address in Gelato API, we will charge VAT in the delivery country where Gelato is VAT registered.
VAT on domestic transactions within the EU
There is a difference between how countries are handling VAT. Please refer to this article for specific information about each country: VAT on local printing and delivery within EU.
Selling to European customers you also need to consider charging VAT.
Important: We strongly advise you to consult a tax specialist to find out your specific obligations.
If you're based in the EU, you should register in the same country that your business is located. In addition, each country has defined a distance selling threshold and if you reach the threshold of any European country, you may also have to register and remit VAT in that country.