As global e-commerce continues to expand, staying compliant with local tax regulations is becoming increasingly essential for businesses. Among the most important tax systems that affect cross-border sales in the European Union are VAT, OSS, and IOSS. These systems not only ensure compliance but also help businesses streamline their operations and avoid costly mistakes. In this article, we will break down what VAT, OSS, and IOSS are, how they work, and how understanding these frameworks can help you stay ahead in the global e-commerce game as we approach 2025. Here’s an table with Standard VAT Rate and Reduced VAT Rate for some important countries: Country Standard VAT Rate Reduced VAT Rate France 20% 5.5% (food, books, etc.) Germany 19% 7% (food, books, etc.) Italy 22% 10% (food, transport, etc.) Spain 21% 10% (food, transport, etc.) Netherlands 21% 9% (food, books, etc.) Belgium 21% 6% (food, transport, etc.) Sweden 25% 12% (food, books, etc.) Ireland 23% 9% (food, books, etc.) Portugal 23% 6% (food, books, etc.) Austria 20% 10% (food, books, etc.) United Kingdom 20% 5% (food, children’s clothing, etc.) Finland 24% 14% (food, transport, etc.) Denmark 25% No reduced rate Poland 23% 5% (food, books, etc.) Czech Republic 21% 15% (food, books, etc.) Greece 24% 13% (food, transport, etc.) Romania 19% 9% (food, books, etc.) Hungary 27% 5% (food, books, etc.) Luxembourg 17% 8% (food, books, etc.) Slovakia 20% 10% (food, books, etc.) Turkey 18% 8% (food, books, etc.) Brazil 17% – 25% (varies by state) 7% – 12% (varies by state) What is VAT ? VAT is charged at each stage of the supply chain, including production, wholesale, and retail. At every stage, tax is applied to […]