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Glossary

VAT (Value Added Tax)

Consumption tax applied on goods and services, collected at each value-add step.

E-Commerce

VAT is charged on goods and services and remitted to tax authorities. Merchants must calculate VAT by jurisdiction, rate, and product type, and report it in filings.

Accurate ledgers simplify VAT reporting and exports to accounting systems. Marketplaces may have marketplace facilitator rules and need clear invoices and reconciliation alongside payouts and fees.

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Related terms

Keep learning with these nearby definitions.

Acquirer
Bank or payment institution that signs merchants and routes their card transactions into the card networks.
Apple Pay
Mobile wallet by Apple that tokenizes cards for contactless and in-app payments.
Card Fraud
Unauthorized card use or theft of credentials to initiate transactions.
Card Network
Payment network (e.g., Visa/Mastercard) that sets rules and routes card transactions between issuers and acquirers.
VAT (Value Added Tax)