Actually, US tax law does not cover the situation. You are confusing two different taxes. VAT is not the same as income tax. VAT is similar to sales tax, not income tax. US tax law does not currently have a sales tax for internet sales, unless the seller has a place of business in the buyers tax area. But yes, if the seller makes income on the sale, they do have to report and pay income tax.
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Actually, US tax law does not cover the situation. You are confusing two different taxes. VAT is not the same as income tax. VAT is similar to sales tax, not income tax. US tax law does not currently have a sales tax for internet sales, unless the seller has a place of business in the buyers tax area. But yes, if the seller makes income on the sale, they do have to report and pay income tax.