Taxes EU VAT Chargebee Docs VAT Number on Invoice: Value-added tax (VAT) is a consumption tax levied on the price of goods and services in the European Union (EU). It is charged at each stage of production and distribution, and the consumer ultimately bears the burden of the tax.
VAT is considered a cornerstone of the EU’s revenue-generating system, providing a significant portion of its budget. Understanding how to correctly include VAT numbers on invoices issued to EU customers is crucial for businesses operating within or with partners in the EU. This article delves into the relevance, benefits, and historical evolution of VAT in the EU context, guiding readers through the intricacies of incorporating VAT numbers on invoices to ensure compliance and avoid potential penalties.
