GlossaryEN1 min readUpdated: Jun 13, 2026

Incoterms VAT Place

The VAT place of supply is determined by the Incoterms clause and the actual delivery location.

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Last updated: 13 June 2026Published: 27 January 2026

Source: https://iccwbo.org/resources-for-business/incoterms-rules/

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Definition & Explanation

The VAT place of supply is determined by the Incoterms clause and the actual delivery location. If supply occurs in the seller's country (e.g., under EXW or FCA), VAT arises there; if delivery is abroad (e.g., under DAP or DDP), VAT typically arises in the destination country, provided the buyer is established there or the transaction is a B2B supply. This distinction has significant consequences for tax reporting and invoicing: the seller must correctly document where VAT arises and whether reverse-charge mechanisms apply.

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Incoterms VAT Place

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Related Terms

Delivered at Place (DAP)

Incoterms Taxable Place of Performance

Place of unloading

Delivered At Place Unloaded

DPU (Delivered at Place Unloaded)

Incoterms place of jurisdiction

Incoterms 2020 Simulator: Who bears costs & risk?

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