Value Added Tax (VAT) is a consumption tax applied to goods and services in many countries, especially across Europe. VAT is collected at each stage of production and distribution, and businesses are required to remit the tax based on regional regulations. VAT rates vary by country and product type, and invoices must clearly show the VAT amount.
If your business sells to customers in the EU or other VAT-enforced regions, you must include VAT in your pricing and reporting. AltoPay helps support compliant VAT invoicing and settlement flows, especially for digital goods or cross-border commerce. Monitoring your VAT liabilities and filing schedules helps avoid penalties and ensures regulatory alignment.
For more than a decade, Jessica Velasco has been a thought leader in the payments industry. She aims to provide readers with valuable, easy-to-understand resources.
