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How to apply VAT for B2C but *not* B2B transactions?
Hello folks - hope you're well.
I have an online business, registered within the EU.
From what I understand, I need to charge VAT for B2C transactions, but not for B2B transactions.
If I want to automatically charge VAT for a B2C sale via Paypal, this is easy through the Paypal interface, where I can set up domestic and international VAT rates.
But how can I not charge that VAT when the buyer is a company (B2B transaction)? In Paypal, we can either instruct the system to automatically add VAT when a sale is made from a specific country, or not charge VAT at all. There is no option in Paypal to "charge VAT if the buyer is an individual but don't charge VAT when the buyer is a company."
I'm interested to know how other business owners have solved this issue.