VAT, GST, and sales tax compliance for international digital businesses. Use when the user asks about: VAT, GST, sales tax, value added tax, goods and services tax, EU VAT, UK VAT, VAT OSS, One-Stop Shop, VAT registration, reverse charge, Merchant of Record, Paddle, Lemon Squeezy, Stripe Tax, dig…
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General reference only
This Guide is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for your personal facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
Source-cited draft. This Guide is source-cited but has not been reviewed by a licensed practitioner. It may be incomplete, outdated, or wrong.
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EU VAT OSS registration threshold (B2C digital services)
€10,000/year in total EU B2C salesEU VAT Directive (Council Directive 2006/112/EC, as amended by Directive 2017/2455/EU)
Germany — Standard VAT rate (digital services)
19%EU VAT Directive (Council Directive 2006/112/EC); German Umsatzsteuergesetz (UStG)
France — Standard VAT rate (digital services)
20%EU VAT Directive (Council Directive 2006/112/EC); French Code Général des Impôts
Netherlands — Standard VAT rate (digital services)
21%EU VAT Directive (Council Directive 2006/112/EC); Dutch Wet op de omzetbelasting 1968
Spain — Standard VAT rate (digital services)
21%EU VAT Directive (Council Directive 2006/112/EC); Spanish Ley del IVA
Italy — Standard VAT rate (digital services)
22%EU VAT Directive (Council Directive 2006/112/EC); Italian D.P.R. 633/1972
Ireland — Standard VAT rate (digital services)
23%EU VAT Directive (Council Directive 2006/112/EC); Irish Value-Added Tax Consolidation Act 2010
Sweden — Standard VAT rate (digital services)
25%EU VAT Directive (Council Directive 2006/112/EC); Swedish Mervärdesskattelagen
EU VAT OSS — filing frequency
QuarterlyEU VAT Directive (Council Directive 2006/112/EC, as amended by Directive 2017/2455/EU)
EU VAT OSS — filing deadline
End of month after quarterEU VAT Directive (Council Directive 2006/112/EC, as amended by Directive 2017/2455/EU)
EU B2B reverse charge — VAT rate on supply
0% (reverse charge; customer self-assesses)EU VAT Directive (Council Directive 2006/112/EC), Article 196
UK VAT registration threshold — non-UK businesses (digital services)
No threshold — must register from first saleUK HMRC — VAT for digital services; https://www.gov.uk/guidance/vat-on-digital-services
UK VAT registration threshold — UK businesses
£90,000UK HMRC — VAT for digital services; Value Added Tax Act 1994 (Schedule 1)
UK — Standard VAT rate
20%Value Added Tax Act 1994; https://www.gov.uk/guidance/vat-on-digital-services
UK VAT — filing deadline
1 month + 7 days after period endValue Added Tax Act 1994; HMRC VAT Notice 700/12
UK VAT — filing frequency
QuarterlyValue Added Tax Act 1994; HMRC VAT Notice 700/12
US economic nexus threshold — sales amount
$100,000 in sales per yearSouth Dakota v. Wayfair, 585 U.S. 162 (2018); state-by-state economic nexus statutes
US economic nexus threshold — transaction count
200 transactions/yearSouth Dakota v. Wayfair, 585 U.S. 162 (2018); state-by-state economic nexus statutes
Australia GST registration threshold — non-resident digital services
AUD 75,000/year in Australian salesA New Tax System (Goods and Services Tax) Act 1999; https://www.ato.gov.au/Business/International-tax-for-business/GST-on-imported-services-and-digital-products/
Australia GST rate (digital supplies)
10%A New Tax System (Goods and Services Tax) Act 1999; https://www.ato.gov.au/Business/International-tax-for-business/GST-on-imported-services-and-digital-products/
Australia GST — filing frequency and form
Quarterly BAS (Business Activity Statement)A New Tax System (Goods and Services Tax) Act 1999; Taxation Administration Act 1953
Australia GST — filing deadline
28 days after quarter endA New Tax System (Goods and Services Tax) Act 1999; Taxation Administration Act 1953
Singapore GST mandatory registration threshold
SGD 1,000,000/year taxable turnoverGoods and Services Tax Act (Singapore); https://www.iras.gov.sg
Singapore GST threshold — non-resident digital services
SGD 100,000 in Singapore consumer salesGoods and Services Tax Act (Singapore); https://www.iras.gov.sg
Singapore GST rate
9% (increased from 8% in 2024)Goods and Services Tax Act (Singapore); https://www.iras.gov.sg
Singapore GST — filing frequency
QuarterlyGoods and Services Tax Act (Singapore); https://www.iras.gov.sg
Singapore GST — filing deadline
1 month after quarter endGoods and Services Tax Act (Singapore); https://www.iras.gov.sg
Japan JCT registration threshold — foreign digital service providers
No threshold — must register regardless of revenueJapanese Consumption Tax Act (消費税法); https://www.nta.go.jp
Japan Consumption Tax (JCT) — standard rate
10%Japanese Consumption Tax Act (消費税法); https://www.nta.go.jp
Japan Consumption Tax (JCT) — reduced rate
8%Japanese Consumption Tax Act (消費税法); https://www.nta.go.jp
Japan JCT — filing deadline
2 months after fiscal year endJapanese Consumption Tax Act (消費税法); https://www.nta.go.jp
Japan JCT — filing frequency
Annually or semi-annuallyJapanese Consumption Tax Act (消費税法); https://www.nta.go.jp
New Zealand GST threshold — non-resident digital services
NZD 60,000/year in NZ salesGoods and Services Tax Act 1985 (New Zealand)
New Zealand GST rate
15%Goods and Services Tax Act 1985 (New Zealand)
Canada GST/HST threshold — non-resident digital service providers
CAD 30,000/year in Canadian salesExcise Tax Act (Canada); https://www.canada.ca/en/revenue-agency.html
Canada GST — federal rate
5%Excise Tax Act (Canada); https://www.canada.ca/en/revenue-agency.html
Canada provincial tax — range
0–10% provincial (HST combined up to 15%)Excise Tax Act (Canada); respective Provincial Sales Tax Acts
Canada GST/HST — filing frequency
Annually or quarterlyExcise Tax Act (Canada)
UK Digital Services Tax — rate
2%Finance Act 2020 (UK), Part 2 (Digital Services Tax)
UK Digital Services Tax — global revenue threshold
£500M global revenueFinance Act 2020 (UK), Part 2 (Digital Services Tax)
UK Digital Services Tax — local revenue threshold
£25M UK revenueFinance Act 2020 (UK), Part 2 (Digital Services Tax)
France Digital Services Tax — rate
3%French Loi n° 2019-759 du 24 juillet 2019 portant création d'une taxe sur les services numériques
France Digital Services Tax — global revenue threshold
€750M global revenueFrench Loi n° 2019-759 du 24 juillet 2019 portant création d'une taxe sur les services numériques
France Digital Services Tax — local revenue threshold
€25M France revenueFrench Loi n° 2019-759 du 24 juillet 2019 portant création d'une taxe sur les services numériques
Italy Digital Services Tax — rate
3%Italian Legge di Bilancio 2020 (Law 160/2019), Article 1 paras 35–50 (Imposta sui servizi digitali)
Italy Digital Services Tax — global revenue threshold
€750M global revenueItalian Legge di Bilancio 2020 (Law 160/2019), Article 1 paras 35–50
Italy Digital Services Tax — local revenue threshold
€5.5M Italy revenueItalian Legge di Bilancio 2020 (Law 160/2019), Article 1 paras 35–50
Spain Digital Services Tax — rate
3%Spanish Ley 15/2020 de 15 de junio, del Impuesto sobre Determinados Servicios Digitales
Spain Digital Services Tax — global revenue threshold
€750M global revenueSpanish Ley 15/2020 de 15 de junio, del Impuesto sobre Determinados Servicios Digitales
Spain Digital Services Tax — local revenue threshold
€3M Spain revenueSpanish Ley 15/2020 de 15 de junio, del Impuesto sobre Determinados Servicios Digitales
Turkey Digital Services Tax — rate
7.5%Turkish Digital Services Tax Law No. 7194 (2019)
Turkey Digital Services Tax — global revenue threshold
€750M global revenueTurkish Digital Services Tax Law No. 7194 (2019)
Turkey Digital Services Tax — local revenue threshold
TRY 20M Turkey revenueTurkish Digital Services Tax Law No. 7194 (2019)
India Equalization Levy — rate
2%Finance Act 2020 (India), Chapter VIII (Equalization Levy on e-commerce operators)
India Equalization Levy — global revenue threshold
No thresholdFinance Act 2020 (India), Chapter VIII
India Equalization Levy — local revenue threshold
₹2 crore (~$240K)Finance Act 2020 (India), Chapter VIII
India Equalization Levy — filing frequency
QuarterlyFinance Act 2020 (India), Chapter VIII
Kenya Digital Service Tax — rate
1.5%Kenya Finance Act 2020; Income Tax Act (Kenya), Section 12A
Kenya Digital Service Tax — global revenue threshold
No thresholdKenya Finance Act 2020; Income Tax Act (Kenya), Section 12A
Kenya Digital Service Tax — local revenue threshold
KES 0 (all digital services)Kenya Finance Act 2020; Income Tax Act (Kenya), Section 12A
EU VAT late registration — minimum penalty
~€500EU VAT Directive (Council Directive 2006/112/EC); Member State implementing legislation
EU VAT late registration — maximum penalty
~5% of unpaid VATEU VAT Directive (Council Directive 2006/112/EC); Member State implementing legislation
EU voluntary disclosure — penalty reduction
50–75% reductionEU VAT Directive (Council Directive 2006/112/EC); Member State implementing legislation
UK HMRC unprompted voluntary disclosure — penalty reduction
~30% of maximum penaltyHMRC Compliance Handbook (CH); Finance Act 2007, Schedule 24
US state Voluntary Disclosure Program — penalty reduction
Generally 50%+ reductionState-by-state Voluntary Disclosure Agreements (VDA); Multistate Tax Commission VDA program
Professional help threshold — total VAT exposure
€5,000Cross-Border VAT/GST Compliance skill (general guidance)
EU de minimis VAT exemption on imports — abolished
€0 (previously €22; removed post-2021)EU Council Directive 2017/2455/EU and Directive 2019/1995/EU (abolition of €22 de minimis from 1 July 2021)
EU customs duty threshold on imports
€150EU Customs Code (Regulation (EU) No 952/2013); EU Council Regulation on customs duty relief
EU IOSS — goods value limit for VAT collection at point of sale
Goods <€150EU Council Directive 2017/2455/EU (IOSS scheme)
US de minimis customs duty exemption (Section 321)
≤$800 USD per day per importer19 U.S.C. § 1321 (Section 321, Tariff Act of 1930)
Based on work by Artin (@ar-gen-tin), licensed under MIT. Adapted for the OpenAccountants format.
Disclaimer: This skill provides general guidance on VAT/GST compliance for digital services. VAT rules are complex, jurisdiction-specific, and change frequently. Consult a qualified indirect tax advisor before registering, filing, or taking positions on VAT/GST obligations. Errors can result in retroactive assessments, penalties, and interest.
The answer depends on three factors:
| Revenue Level | Recommendation | Estimated Cost |
|---|---|---|
| <€10,000 from any single jurisdiction | Monitor only — below most thresholds | $0 |
| €10,000–€100,000 with global customers | Use a Merchant of Record (Paddle, Lemon Squeezy) — they handle all tax | 5–10% of revenue |
| >€100,000 with concentrated markets | Self-register in top 2–3 markets + Stripe Tax for automation | $2,000–5,000/year in accounting |
| Revenue | Complexity Tolerance | Recommendation |
|---|---|---|
| <$50,000 | Any | MoR (Paddle / Lemon Squeezy) |
| $50,000–$200,000 | Low | MoR |
| $50,000–$200,000 | High | Self-register top markets + Stripe Tax |
| >$200,000 | Any | Self-register + accountant + Stripe Tax |
MoR services (Paddle, Lemon Squeezy, FastSpring) act as the legal seller:
| Country | Standard Rate |
|---|---|
| Germany | 19% |
| France | 20% |
| Netherlands | 21% |
| Spain | 21% |
| Italy | 22% |
| Ireland | 23% |
| Sweden | 25% |
| Tool | Cost | Detail |
|---|---|---|
| Stripe Tax | $0.50/transaction | Automatic calculation and collection |
| TaxJar / Avalara | Varies | Full compliance automation |
| Paddle / Lemon Squeezy | 5–10% of revenue | MoR handles everything |
| Factor | Detail |
|---|---|
| Trigger | Selling digital services to Australian consumers (B2C) |
| Threshold | AUD 75,000/year in Australian sales |
| Rate | 10% on digital supplies |
| Filing | Quarterly BAS (Business Activity Statement) |
| Non-resident suppliers | Must register for GST if above threshold |
| Factor | Detail |
|---|---|
| Trigger | Taxable turnover >SGD 1,000,000/year (mandatory); voluntary registration available |
| Non-resident digital services | Must register if >SGD 100,000 in SG consumer sales |
| Rate | 9% (increased from 8% in 2024) |
| Filing | Quarterly |
| Factor | Detail |
|---|---|
| Trigger | Foreign businesses selling digital services to Japanese consumers |
| Threshold | Must register regardless of revenue threshold |
| Rate | 10% (8% reduced rate for some items) |
| Factor | Detail |
|---|---|
| Trigger | Non-resident suppliers of digital services to NZ consumers |
| Threshold | NZD 60,000/year in NZ sales |
| Rate | 15% |
| Factor | Detail |
|---|---|
| Trigger | Non-resident suppliers selling digital services to Canadian consumers |
| Threshold | CAD 30,000/year in Canadian sales |
| Rate | 5% GST (federal) + 0–10% provincial (HST combined up to 15%) |
| Registration | Simplified registration available for non-residents |
| Jurisdiction | Filing Frequency | Typical Deadline |
|---|---|---|
| EU VAT OSS | Quarterly | End of month after quarter |
| UK VAT | Quarterly | 1 month + 7 days after period |
| Australia GST | Quarterly | 28 days after quarter |
| Singapore GST | Quarterly | 1 month after quarter |
| Japan JCT | Annually or semi-annually | 2 months after fiscal year end |
| Canada GST/HST | Annually or quarterly | Varies by reporting period |
| US Sales Tax | Varies by state | Monthly / quarterly / annually |
DST is a revenue-based tax on digital services. Unlike VAT (transaction-level, charged to customers) and corporate tax (profit-based), DST is calculated on gross revenue and comes out of your own revenue.
| Country | DST Rate | Global Revenue Threshold | Local Revenue Threshold |
|---|---|---|---|
| UK | 2% | £500M global | £25M UK |
| France | 3% | €750M global | €25M France |
| Italy | 3% | €750M global | €5.5M Italy |
| Spain | 3% | €750M global | €3M Spain |
| Turkey | 7.5% | €750M global | TRY 20M Turkey |
| India (Equalization Levy) | 2% | No threshold | ₹2 crore (~$240K) |
| Kenya | 1.5% | No threshold | KES 0 (all digital services) |
For most small businesses: The high global revenue thresholds in Europe (£500M, €750M) make DST irrelevant.
Exceptions — India and Kenya have NO global revenue threshold:
| Your India/Kenya Revenue | Action |
|---|---|
| <$10,000/year | Monitor; enforcement limited at this scale |
| $10,000–$50,000/year | Consult tax advisor; weigh registration cost vs exposure |
| >$50,000/year | Register and comply; enforcement risk is real |
Most EU countries impose penalties for selling above the €10,000 threshold without registration:
| Jurisdiction | Program | Penalty Reduction |
|---|---|---|
| EU (most countries) | Voluntary correction | 50–75% reduction |
| UK | Unprompted disclosure to HMRC | Best terms (~30% of maximum) |
| Australia | Voluntary disclosure | Significant reduction; no penalty if minor |
| US | Voluntary Disclosure Programs (VDP) | Varies by state; generally 50%+ reduction |
"Unprompted" means you contact the authority before they contact you. Once an audit begins, voluntary disclosure terms are lost.
If total exposure exceeds €5,000 or involves multiple countries, hire a VAT specialist. Typical remediation cost: €500–2,000 per engagement — almost always cheaper than the penalties avoided.
| Dimension | Digital Services | Physical Goods |
|---|---|---|
| Delivery | Instant, borderless | Shipping, customs clearance |
| VAT trigger | Customer location | Import entry |
| Additional taxes | DST (rare) | Customs duty, tariffs |
| Complexity | Medium | High |
If earning across multiple platforms (YouTube, Patreon, Substack, Gumroad), aggregate total EU digital services revenue for VAT threshold purposes:
Data reflects 2024–2026 rules. VAT/GST thresholds, rates, and registration requirements change frequently. Verify all figures with official sources and a qualified indirect tax advisor. Original content: Artin (@ar-gen-tin) — MIT License. OpenAccountants — open-source accounting skills for AI — info@openaaccountants.com
Other International / Other computations in the OpenAccountants Tax Library.
Rendered from the facts database. General reference only — confirm with a qualified professional before acting.
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