A company matches the definition of a foreign EU webshop if it meets the following three criteria:
- The company is based in the EU and files VAT returns in the Netherlands. This is compulsory for foreign companies which record a turnover in the Netherlands exceeding €100,000. Companies may deduct return shipments from their VAT declarations.
- The company sells goods to consumers over the Internet.
- Goods sold to consumers over the Internet after a purchasing order are dispatched from outside the Netherlands.
In summary, the definition of a foreign EU webshop is a foreign company which sells goods to Dutch consumers over the Internet from another EU country. This means companies selling services over the Internet do not fall within this definition.
It is possible that headquarters of a foreign EU webshop are located outside the European Union. These companies are nevertheless considered EU webshops as they have a branch within the EU and must file VAT returns in the Netherlands. Foreign companies with branches in the Netherlands are considered as Dutch companies. The online turnover of such companies is included in statistics on online retail sales within the Netherlands.