What constitutes intra-Community supply of goods (ICS)?

Transactions need to meet three criteria to be considered as an intra-Community supply of
goods, namely 

  1. shipment across borders - means suppliers dispatching goods to someone based in another
    N.B. Our warehouse is based in Germany.
    This means that orders dispatched to customers in Germany do not cross any borders and, therefore, do not qualify as intra-Community supply.
    This is why these orders are not exempt from VAT. The same applies to business customers
    who provide a German VATIN only
  2. shipment within the EU – means all parties have to be based in EU member states (not just
    somewhere in Europe). 
    Exporting goods into third countries (outside Europe) are usually exempt from VAT, too.
    However, this is the result of individual trade agreements entered into by Austria and these
    countries, and is, therefore, not related to ICS in any way.
  3. both supplier and buyer are VAT-registered businesses based in the EU.
    N.B.  If you purchase goods in our webshop, we validate your VATIN when we process your
    order. Means at the time of the order being placed, we still need to charge 19% VAT. After your
    VATIN has been vetted by SAP (automated procedure), we ship your order without applying
    VAT, and refund any tax you paid in advance (if applicable).