Intra-Community supply of goods: the four conditions for the Article 138 VAT exemption

Last updated 25 Oct 2026 · India

Short answer. Under Article 138 of the VAT Directive 2006/112/EC, a supply of goods is exempt when: (1) the goods are dispatched or transported to another Member State; (2) the buyer is a taxable person (or non-taxable legal person) acting as such there; (3) the buyer is identified for VAT in another Member State and has given you that number; and (4) you report the supply in your recapitulative statement (EC Sales List) correctly (Article 138(1a)). Article 45a of Implementing Regulation 282/2011 gives a presumption of transport when you hold two non-contradictory pieces of evidence from independent parties. The invoice must show the exemption reference (Article 226(11)).

Step by step

Check the buyer's VAT number in VIES before the sale and save the result.
Ship to another Member State and keep transport documents (CMR, bill of lading, carrier invoice, insurance).
Issue an invoice with both VAT numbers and an exemption reference.
Report the sale in the EC Sales List for the right period.

Common mistakes

No VIES check or an invalid number; the exemption can fail.
Missing or wrong EC Sales List entry; since 2020 this is a condition, not a formality.
Only one piece of transport evidence, or evidence from your own company only.
Buyer collects goods without a written statement that they were taken to another Member State.

Checklist

VIES result saved
Two independent transport documents
Invoice with exemption wording and both VAT numbers
EC Sales List filed

Frequently asked questions

What are the conditions for the intra-Community supply exemption?

Goods leave for another Member State, the buyer is a taxable person there, the buyer gives a valid VAT number from another Member State, and the supplier reports the sale in the EC Sales List.

What proof of transport is needed?

Article 45a of Implementing Regulation 282/2011 presumes transport where the supplier holds at least two non-contradictory items of evidence issued by independent parties; national rules may accept other proof.

Does a missing EC Sales List entry matter?

Yes. Under Article 138(1a) the exemption does not apply unless the supplier has filed a correct recapitulative statement or duly justifies the failure.

Official sources

Not tax or legal advice. This is a free explainer of the EU VAT Directive; national rules add to it, so confirm with your tax authority or adviser. Last checked 25 Oct 2026.

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