When a VAT registered entity in one EC Member State supplies goods to a customer in another EC Member State who is not VAT registered, this is deemed to be a distance selling arrangement in the context of VAT. Such transactions are usually B2C, i.e. to private individuals. Distance selling only applies to physical goods not services.
If you are a business established outside the EU then this will not usually classify as distance selling in regards to VAT. There may however be an obligation for the business to be VAT registered in an EC member state if this is the case. --Latest--