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.