e-Commerce Glossary · D-E

What is VAT in e-commerce?

VAT in e-commerce refers to the Value Added Tax applied to sales made through e-commerce platforms. Countries apply their own VAT rates to e-commerce sales, and these rates may be the same as or different from the VAT rates applied to sales in physical stores. E-commerce platforms are obliged to pay the VAT at the determined rate on the revenue obtained from their sales to the relevant tax office.