When a business sells goods to a customer located outside the European Union and those goods leave the EU, the sale is exempt from VAT. The exemption is, however, tied to evidence: proof that the goods actually left the EU.
What are the conditions of the exemption, which documents should you keep and which mistakes should you avoid when selling from or through France? Here are the essentials.
Conditions for the exemption
For an export sale to be VAT-exempt, the following must be in place:
- the goods are shipped or transported outside the European Union, by the seller or by the customer;
- an export declaration is lodged with customs and the exit of the goods is confirmed;
- the invoice states the exemption and its legal basis;
- the seller keeps all supporting documents.
The evidence to keep
The main evidence is the customs document showing that the goods left the territory of the Union. It is supported by commercial and transport documents.
| Type of evidence | Examples |
|---|---|
| Customs document | Export declaration with exit confirmation |
| Transport documents | Air waybill, bill of lading, road consignment note |
| Commercial documents | Invoice, delivery note |
| Proof of payment | Bank statements, customer payment advices |
Keep these documents for as long as a review remains possible, so that you can produce them quickly.
The path of an exempt export
From the sale to the invoice, the typical sequence is as follows:
Export outside the EU or intra-EU supply?
A frequent mistake is to confuse a sale outside the EU with a supply to another Member State. The two fall under different regimes, with different supporting documents.
For supplies to another Member State, see our page on the VAT recapitulative statement.
Points to watch and frequent mistakes
Without proof of exit, the tax authorities may refuse the exemption and claim French VAT on the sale. This also applies to sales where the customer collects the goods in France: the seller must then hold evidence that the customer subsequently took them out of the EU.
- Invoicing without VAT before receiving the exit confirmation.
- Not keeping the documents for the period during which a review is possible.
- Confusing a sale outside the EU with a supply to another Member State.
- Overlooking the cost of reassessed VAT, plus interest and penalties.
As a practical habit, build the exit check into your order-to-cash process: do not release the exempt invoice or close the sale until the exit document is on file, and ask your forwarder or carrier to send it to you systematically. A simple checklist per shipment (declaration, exit confirmation, transport document, invoice, payment) makes a later review far easier to handle.
How Hanoutax can help
Hanoutax acts as a French VAT agent (mandataire fiscal) for European companies. We check your export documents and the correct treatment of your sales, and we handle your VAT returns after a VAT registration in France if one is needed. Also discover our VAT treatment analysis service, and our article on importing into France.
FAQ
Is an export outside the EU always exempt from VAT?
It is exempt when the goods actually leave the Union and the seller can prove it. The exemption rests on an export declaration with exit confirmation, supported by commercial and transport documents. Without proof, French VAT may be claimed.
Which documents should I keep for an export?
The main evidence is the customs document showing the exit. Add the transport documents (air waybill, bill of lading, road consignment note), the invoice, the delivery note and proof of payment. Keep them for as long as a review remains possible.
What if the customer collects the goods in France?
The seller must hold evidence that the customer subsequently took the goods out of the EU. Failing that, the tax authorities may challenge the exemption. It is prudent to set out the collection terms in writing and to obtain the exit documents.
Can I invoice without VAT before the goods leave?
This is a frequent mistake to avoid. The exemption assumes that exit is effective and proven. Wait for the exit confirmation, or adopt an internal procedure that links exempt invoicing to receipt of that document.
How does this differ from a supply to another Member State?
An intra-EU supply concerns a customer in another Member State and falls under a separate regime, with its own evidence and a recapitulative statement. An export concerns a customer outside the Union and rests on the export declaration lodged with customs.
Export sales to secure? Let’s talk.
Related reading
Informational content, not legal advice. The rules that apply depend on your situation.
