Financial & invoicing terms explained

VAT

VAT is common outside the US—typically shown as a tax on value added at each stage.

Invoices

Include VAT number, rate, and net/tax/gross amounts as local rules require.

Reverse charge

B2B cross-border rules may shift VAT liability—state it clearly.

Rates

Reduced rates may apply to specific categories—map products correctly.

VAT — FAQ

VAT vs sales tax?
VAT is multi-stage; US sales tax is typically single-stage at retail.
VAT number?
Show on B2B invoices where required for reverse charge.
Rates?
Can differ by country and category—keep product mappings updated.
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