- Definition and Functionality: Agentic commerce refers to a shopping model where AI agents autonomously handle purchasing tasks on behalf of consumers, allowing them to set preferences and automate routine shopping without needing to search or compare products themselves.
- VAT Implications: The involvement of AI agents complicates the identification of buyers in transactions under EU VAT law, as these agents do not possess legal status and cannot be considered purchasers. Consequently, transactions are treated as direct sales between sellers and the actual buyers, raising challenges related to customer location verification and the potential for incorrect VAT application.
- Compliance Risks: The rise of agentic commerce presents risks of tax evasion, as consumers might instruct AI agents to seek VAT-free purchases or exploit exemption thresholds through manipulation of transaction sizes. Establishing clear guidelines for AI agents and implementing automated VAT ID validations are essential to mitigate these compliance challenges and maintain the integrity of the VAT system.
Source Forbes
