E-commerce VAT regulations

E-commerce VAT regulations involve applying a Value Added Tax on online sales, depending on where the buyer and seller are located. If you sell goods within your country, you charge local VAT rates. For sales across borders within the EU, VAT rules depend on whether you’re selling to consumers or businesses, often requiring VAT registration in the buyer’s country. When selling to non-EU countries, VAT may not apply, but customs duties and import taxes could. Proper VAT compliance ensures businesses collect the correct tax, report it accurately, and avoid penalties, fostering transparent international trade.