The Mechanism Of Calculating Vat Under The European Union

Value Added Tax (VAT) collected on digital products and services is levied at the "standard" rate applicable for the country in which a customer consumes the product and services. A common VAT system is compulsory for member states of the European Union (EU). The EU VAT system is imposed by a series of European Union directives, the most important of which is the Sixth VAT Directive (Directive 77/388/EC).

The following questions have been addressed in this article:

How is VAT calculated?
What is the difference between VAT calculation and sales tax calculation?
Where Exactly is the end of the direct quote?


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