If you sell to other businesses that are located in VAT countries, you should collect a VAT registration number from those customers and validate that number.
In many countries, if you meet those requirements, VAT is not charged on B2B sales. Instead, B2B transactions are subject to a “reverse charge,” which transfers the responsibility of accounting for VAT from the seller to the buyer. In most cases, if the buyer provides appropriate documentation, VAT is not applied to these transactions.
Importantly, the reverse charge mechanism keeps B2B sellers from having to register and file if the right process is followed. B2C sales, on the other hand, are subject to VAT and can require remote sellers to register and file in the country of sale. Without proper documentation, B2B sales can also be treated in the same manner.
The below flow chart may be helpful to determine whether you have an obligation to charge VAT on your sales.