What does B2C mean?

Business-to-consumer (B2C) is when a business sells goods or services directly to a consumer, not to another business. It’s the opposite of business-to-business (B2B) transactions.

Example B2C transactions:

  • A store sells a computer to a consumer
  • An artist sells a painting to tourist
  • A mechanic repairs a person’s car

When we talk about VAT, a B2C transaction is a sale to a consumer that does not charge VAT. The VAT rules for B2C transactions are different from B2B transactions.

How VAT works in Germany ➞