B2B vs B2C Cross-border E-commerce
Compare B2B and B2C cross-border e-commerce: VAT treatment, customs procedures, documentation, and payment terms.
Transaction Type Overview
B2B Cross-border
Business-to-business transactions. VAT reverse charge often applies. Higher order values, longer payment terms, formal documentation required.
Pros
- ✓Larger order values
- ✓VAT reverse charge (no cash outflow)
- ✓Repeat orders
- ✓Formal contracts reduce disputes
Cons
- ✗Longer payment terms (30-90 days)
- ✗More documentation required
- ✗Need customer VAT numbers
- ✗Complex pricing negotiations
Best for: Wholesale, bulk orders, established trade relationships
Cost: Lower per-unit margin but higher total value
Setup: Longer setup, ongoing relationship
B2C Cross-border
Business-to-consumer transactions. VAT charged at checkout (OSS/IOSS). Lower order values, immediate payment, consumer protection laws apply.
Pros
- ✓Immediate payment
- ✓Higher per-unit margins
- ✓Larger customer base
- ✓Digital marketing scalable
Cons
- ✗Lower order values
- ✗Consumer protection obligations
- ✗Returns and refunds
- ✗VAT charged at checkout
Best for: DTC brands, consumer products, marketplace sellers
Cost: Higher per-unit costs, lower total order value
Setup: Quick setup, ongoing marketing
FAQ
How does VAT differ between B2B and B2C cross-border sales?+
In B2B intra-EU sales, VAT reverse charge applies: the buyer accounts for VAT, and you invoice without VAT (with both VAT numbers on invoice). In B2C sales, you charge VAT at the buyer's country rate via OSS.