FoundersOnly

Selling to other countries: how do you handle sales tax and VAT?

#1

Selling software online means selling across borders from the first day, and consumption taxes often follow the customer's location, not yours. It confuses nearly everyone at first.

Reply with how you handle it:

  • Where you are based
  • Where most customers are
  • Businesses or consumers
  • Your approach: a merchant of record, your payment provider's tax tools, an accountant, registering yourself, or not yet dealt with
  • What it costs in fees or time
  • What surprised you

The main approaches

  • A merchant of record sells on your behalf and handles the tax in the places it covers, for a higher fee.
  • Tax tools from a payment processor calculate and collect. Registration and filing usually remain your job.
  • Registering and filing yourself, with an accountant, in each place where you are required to.
  • Waiting until a threshold is reached, where the rules allow it. Check carefully. Not every jurisdiction has one for foreign sellers.

Nothing in this thread is tax advice. Rules change and differ widely. Use the replies to prepare your questions, then confirm with a professional who knows your country.

Your perspective belongs here.

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