VAT settlement

Read more about the calculation of the VAT rate based on the delivery location.

Paula Luiten - van der Schilt avatar
Written by Paula Luiten - van der Schilt
Updated over a week ago

Floriday determines, on the basis of the delivery location of the order, the VAT regime and VAT rate of this order. For example, in the case of a delivery location in Belgium, the Belgian VAT regime and Belgian VAT rate will be calculated, and in the case of a delivery location in Germany, the German VAT (MwSt) rate will be calculated.

The VAT will be paid by the purchasing party and paid to the selling party. If the buyer places the order, he/she will determine the delivery location. If the grower places a direct order, he/she can choose which delivery location specified by the buyer he/she will use.

The delivery location in Floriday is determined on the basis of the agreed Incoterm. Incoterms describe the distribution of obligations, risks and costs in the case of international transactions between the buyer and seller with regard to the transport, the insurance, permits and customs formalities.

The most frequently used Incoterm for Germany is DDP DE, delivered to the buyer’s location in, for example, Herongen, Germany (DE) carriage paid.

The most frequently used Incoterm for Belgium is DDP BE, delivered to the buyer’s location in Belgium (BE) carriage paid.

This settlement of VAT has nothing to do with Floriday, but is owed on the basis of the applicable turnover tax legislation. However, because a delivery location/Incoterm currently has to be entered (compulsory field), the VAT rate is immediately passed on.

The only way for the buyer not to be taxed with foreign VAT via Floriday is:

  • to agree the Incoterm EXW NL, by which the delivery takes place from the nursery at the grower in the Netherlands and the buyer transports the products at his own expense and risk to his location in Germany/Belgium;

  • to agree DDP NL, by which the delivery takes place from the nursery at the grower in the Netherlands and the buyer transports the products at his own expense and risk to his location in Germany/Belgium;

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