A third country is a country that is not a member of the European Union. To be eligible for the exemption, one cannot habitually reside in the European Union.
However, there are territories of countries belonging to the European Union that are considered “third countries” or “third territories”, and which are treated, for VAT purposes, as not belonging to the European Union.
Of these, the following are considered “Third Countries”:
- Heligoland Island and Businger Territory, of the 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 are considered “third territories”:
- Canary Islands, of the Kingdom of Spain;
- The territories of the French Republic referred to in Article 349 and paragraph 1 of Article 355 of the Treaty on the Functioning of the European Union (Guadeloupe, French Guiana, Martinique, Mayotte, Réunion, Saint-Barthélemy, Saint-Martin);
- Mount Athos, of the Hellenic Republic;
- Åland Islands, of the Republic of Finland.
If the traveller resides in a third country or territory, they may benefit from the VAT exemption provided for in the scheme.
