Question: Paypal, VAT, B2B, B2C transactions

Have you tried reaching out to your Accountant about this information ? You would get better advice from a professional, than some one from here. You could also look into paypal for that info, however you still may be better off talking to a Pro.

It's not up to PayPal to collect VAT on your behalf. It's just a payment processor. You'll usually need to incorporate any applicable VAT in your selling prices, depending on the location of your buyers.

VAT's a complicated issue, but that's why accountants were invented.

I have a account or 2 that I had to set up VAT. On a digital level its a pain in the rear end to say the least. The amount of information needed at the time of purchase I think in the end reduces sales. You don't need just a paypal acct, you need a billing address, and then you need to pair that address with the 2 digit country code, that you get from the paypal transaction.

So, some reading for you:

a product I use ( intuit ) that actually brings those 2 pieces of needed data together for me: https://quickbooks.intuit.com/uk/blo...ommerce-sales/

General VAT info - maybe not so much for the OP but for the group at large: https://quickbooks.intuit.com/uk/blo...ommerce-sales/

Specific VAT rules as they apply to digital goods and services: https://www.gov.uk/guidance/the-vat-...ers#euvatrules

VAT rates based on category: https://www.gov.uk/guidance/rates-of...s-and-services

The "Specific VAT Rules" link is probably the MOST informative in terms of detail how to determine if it is B2B vs B2C ( general rule of thumb - if no VAT # is given at checkout then B2C it is )

Its a bit tricky, but ensuring its done right is one less stress.

Hope that Helps!