Value Added Tax (VAT)
Do I have to charge VAT on my international invoices?
Value Added Tax (VAT) is not levied on the profits, resulting from any given transaction (direct tax), but on the gross turnover of goods and services supplied (indirect tax). It is levied by the economic operators in proportion to the value they add at every stage of the production and distribution process through a complex mechanism of declarations and deductions. As a result, the charge of the tax falls upon the consumer.
This tool will help you to verify whether VAT should be charged on your international transactions. Your answers to the questions will guide you towards the appropriate answer.