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VAT (Value Added Tax) is a tax on consumer spending within the territory of a European Union (EU) Member State. The European Union makes it mandatory for all its member countries to implement VAT as per the EU VAT code.

Listed below are some Frequently Asked Questions for EU VAT.

What are the rules for charging VAT?

When the seller is within the EU & the buyer (receiving business/end-consumer) is in:

  • Same country: VAT is to be charged at the local country's VAT rates.

  • Another EU country and has a valid VAT ID: No VAT is to be charged.

  • Another EU country but does not have a valid VAT ID: VAT is to be charged at VAT rates of the buyer's country.

  • Outside EU: No VAT is to be charged.

  • When the seller is outside the EU & the buyer is:

    • Based in the EU and has a valid VAT ID: No VAT is to be charged.

    • Based in the EU but does not have a valid VAT ID: Must charge VAT in the EU country where the buyer belongs.

    How do I add my VAT ID?

    You can add your VAT ID after you start charging EU VAT. Learn how.

    In case you do not wish to charge your Customers and Sub-Resellers EU VAT, you can add your VAT ID from your Control Panel by clicking the icon at the top right corner of the page and then clicking on Manage Profile. You can then enter your VAT ID in the provided field.

    I have now provided my VAT ID, will I get a refund for the VAT already charged?

    No, VAT once charged would not be refunded. However, you will not be charged the VAT once you have provided a valid VAT ID.