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How VAT Works on Physical Items VAT stands for value-added tax. It's a tax based on the consumption of goods and services that is commonly found in the EU and select other regions of the world. VAT is also known as JCT in Japan; GST in New Zealand and Australia; and QST in Quebec (Canada). VAT may be charged to buyers on their purchases (“VAT on Items Sold on Etsy”) as well as to eligible sellers on their paid seller fees ("VAT on seller fees”). Learn how VAT works on digital items. This article contains general information. You should always contact your local tax authority or tax advisor for more information. Jump to a section: Am I required to charge VAT on my physical items? Selling to Australian buyers from overseas Selling to German buyers from outside of the EU Selling to UK buyers from overseas UK Sellers: Making Tax Digital rules Am I required to charge VAT on my digital items? What should a seller invoice to a buyer look like? Is V...