GlossaryEN1 min readUpdated: Jun 26, 2026
VAT-exempt delivery
In cross-border trade accounting, a VAT-exempt delivery arises when the statutory conditions for zero-rating or exemption are met and the supplier therefore issues the invoice without VAT.
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Source: https://www.haufe.de/steuern/ust/steuerfreie-lieferungen-umsatzsteuer
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Definition & Explanation
In cross-border trade accounting, a VAT-exempt delivery arises when the statutory conditions for zero-rating or exemption are met and the supplier therefore issues the invoice without VAT. The two principal cases are intra-EU supplies between VAT-registered businesses in different member states and exports to third countries. Core requirements include valid VAT identification numbers on both sides, physical dispatch of the goods from the country of supply, and watertight documentation – transport records, proof of delivery, and commercial invoices. Where documentation falls short, tax authorities may disallow the exemption retrospectively, leaving the supplier liable for the unpaid tax. This concept should not be confused with domestic VAT exemptions such as those applying to certain financial or medical services, which operate under different rules and typically deny input tax recovery.
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