VAT and GST compliance is one of the most complex challenges facing cross-border e-commerce businesses. Understanding when and where you need to register, charge, and remit these taxes is essential.
Registration Thresholds
Most jurisdictions have registration thresholds based on sales volume. Once you exceed these thresholds, you must register and begin collecting tax, even without a physical presence.
Digital Services Rules
Special rules often apply to digital services, with many countries requiring tax to be charged based on the customer's location rather than the seller's location.
Marketplace Facilitator Laws
Increasingly, online marketplaces are being made responsible for collecting and remitting tax on behalf of sellers, but understanding who is responsible in each jurisdiction remains critical.