It’s a country that is not a member of the European Union. In order to qualify for the exemption he cannot be habitually resident in the European Union, ie, he cannot be habitually resident in the following countries: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Netherlands, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Poland, Portugal, Romania, Slovakia, Slovenia, Switzerland, United Kingdom.
However, there are territories of countries belonging to the European Union which are considered as "third countries" or "third territories", which are treated for VAT purposes as not belonging to the European Union.
The following shall be considered as "third countries":
- Island of Helgoland and territory of Businger, Federal Republic of Germany;
- Ceuta and Melilla, of the Kingdom of Spain;
- Livigno, Campione d'Italia and national waters of the Lugano River, of the Italian Republic;
The following shall be considered as "third territories":
- The Canary Islands, of the Kingdom of Spain;
- The territories of the French Republic referred to in Articles 349 and 355 (1) of the Treaty on the Functioning of the European Union (Guadeloupe, French Guiana, Martinique, Maiote, Reunion, Saint-Barthélemy, Saint-Martin);
- Mount Atos of the Hellenic Republic;
- Channel Islands of the United Kingdom of Great Britain and Northern Ireland (Jersey, Guernsey, Alderney and Sark);
- Aland Islands, Republic of Finland;
If the traveler resides in a third country or territory he may benefit from the VAT exemption under the scheme.