EU VAT-area and exceptions from it. Which countries and regions are included in the EU VAT area? List of exemptions from the value-added tax area of the European Union? Where can I find a table with the regions and parts of countries that are not included in the EU-vat-area?
VAT-area of the European Union
To be able to handle EU VAT and to know whether to book sales or purchases as EU sales or EU purchases, one must know which countries are part of the EU.
In addition, one must check which areas of the EU are part of the EU VAT area, the EU Customs Union or both.
There are some confusing exceptions. Did you know Finland has limitations too? Consequently, sales to Åland should not be included in the EC-sales list (periodic reporting for EU-sales of services).
But unfortunately this is not the only exception, even Germany has exceptions. Luckily, these exceptions are quite small and insignificant areas. Consequently, it doesn’t affect that many, but today when more and more small businesses sell items and services online on the internet to customers around the world, a growing number of small companies will be affected by these exceptions.
Value Added Tax region of the EU
Here is the complete list of countries and territories that are included in the EU VAT area and which states and territories, for tax purposes, are considered to be outside the EU.
|EU countries||Exceptions (treated as exports outside EU)|
|Cyprus||those areas not controlled by the Republic of Cyprus, ie the Turkish part. However, the British basins Akrotiri and Dhekelia will be seen as part of the Republic of Cyprus.|
|Denmark||The Faroe Islands and Greenland are not included in the EU|
|Finland||the landscape of Åland|
|France, including the Principality of Monaco||the French Overseas Departments (French Guiana, Guadeloupe, Martinique, and Réunion)|
|Greece||Agion Oros (Mount Athos), a peninsula in northern Greece, with monasteries where only monks can live, a bit like a Greek Vatican City.|
|Italy||Livigno, Campione d’Italia and the Italian parts of Lake Lugano|
|Portugal, including the Azores and Madeira|
|Spain, including the Balearic Islands (Mallorca, Ibiza, Menorca and Formentera)||Ceuta, Melilla, and Canary Islands (Gran Canaria, Tenerife, Fuerteventura, Lanzarote, La Palma, La Gomera and El Hierro)|
|Great Britain, including the Isle of Man (island between UK and Ireland)||Channel Islands (Jersey, Guernsey, Alderney, Sark, and Herm) and Gibraltar|
|Germany||The island of Helgoland and the Büsingen am Hochrhein area (enclave in Switzerland)|
States and Regions not part of the EU-VAT-AREA:
• French Overseas Territories
• Aruba and the Netherlands Antilles
• The Faroe Islands and Greenland
• Vatican City
• San Marino
• Gibraltar (UK)
Which European countries are not in the EU?
There are also several countries in geographic Europe that you may think are EU countries, but these areas are not EU countries and are not part of the EU VAT area:
Kaliningrad oblast / Ostpreussen (the region between Poland and Lithuania belongs to Russia)
Macedonia, Montenegro, Kosovo, Serbia, Bosnia.
(Croatia and Slovenia are EU members)