VAT is Value Added Tax. It is a form of Sales Tax (though technically it is distinct from Sales Tax). VAT is a percentage calculated over the value a company has added to a product or service.

If you want to invoice a customer who is not based in the Netherlands, you usually have to do something special with your invoice and the VAT you charge. Exactly what you should do depends on several factors. Is it a consumer or a company with a VAT number? Is the customer located inside or outside the EU? In this article you can read what the rules are for invoicing to a customer abroad and how you can process this in Gekko.