Essential tax considerations for online businesses operating globally.
VAT/GST Requirements
EU Thresholds
- €10,000 combined EU sales annually
- Country-specific registration requirements
- One-Stop-Shop (OSS) registration option
Digital Services Taxation
Requirements vary by jurisdiction:
- Customer location tracking
- Tax rate determination
- Invoice requirements
- Record keeping obligations
Permanent Establishment Risk
Factors that may create tax presence:
- Warehouse/inventory location
- Local employees/contractors
- Server locations
- Office facilities
- Sales activities
Compliance Framework
- Registration Requirements
- VAT/GST registration
- Local tax numbers
- Economic operator registration
- Documentation
- Transaction records (7-10 years)
- Customer location proof
- Tax calculation methodology
Maintain clear documentation in multiple languages
Key Points:
VAT/GST requirements in different countries
Permanent establishment considerations
Cross-border transaction reporting
International tax treaties impact
Navigate global tax obligations for online businesses
FAQ
01
When do I need to collect VAT?
You typically need to collect VAT when selling to EU customers if your sales exceed country-specific thresholds.
02
What is permanent establishment?
It's a fixed place of business that can trigger tax obligations in a foreign country.
03
How do tax treaties affect e-commerce?
Tax treaties can determine which country has the right to tax income from cross-border e-commerce transactions.