International VAT and GST for E-Commerce

As your e-commerce business grows and you penetrate new markets, it’s likely that you will need to register for international GST/VAT in foreign countries as your sales exceed the distance selling thresholds (where there is a threshold, some territories have none).

What Our International VAT & GST Service Covers

We help e-commerce businesses selling internationally manage their tax obligations in multiple countries. Our service includes:

• VAT/GST registration in EU and non-EU countries
• Filing regular VAT/GST returns
• Advising on thresholds, tax nexus, and local rules
• Working with marketplace rules (e.g. Amazon, eBay, Walmart)
• Ongoing support for country-specific compliance
• Appointing fiscal representatives or tax agents where required

We’ll map your sales channels and fulfilment strategy to the right tax treatment in each country.

EU VAT Schemes and Registration Options

There are numerous options for dealing with VAT in the EU, dependent upon where you fulfil from and the value of your consignments and the nature of what you sell. We’ll take a look at each of these in turn.

The One Stop Shop (“OSS”)

Like the iOSS the OSS allows you to register for VAT in one EU country and submit and pay to that one jurisdiction. There are two schemes: the Union and Non-Union. The Union scheme can be used when fulfilling from within the EU. You will still need a VAT registration in the country where you store inventory. The non-Union scheme can be used if supplying digitally supplied services to consumers in the EU.

Individual Country Registrations

There are circumstances where you may still need a VAT number registration in an EU country even if you are using iOSS or OSS. You will need registration in any country where you are storing inventory. For example, if you are using Amazon FBA services in the EU, you will most likely need multiple EU VAT registrations.

United States: Sales Tax Registration & Compliance

Sales tax in the US is administered at the state and local level. You can register in many states at once via the Streamlined Sales Tax Registration System (SSTRS) for those states that are members of the scheme, and register directly with non-member states.

The USA uses the concept of tax “nexus”. If you have nexus in a State, you are required to register. Like the EU, if you store inventory in a State, then you have nexus in that State. Each State also has its own economic thresholds, typically $100,000 or 200 sales.

Rates of GST vary from State to State from 2.9% to 7% but there can also be local county taxes ranging from 1% to 8.3%. Unlike the EU you cannot reclaim any GST on your costs.

There are also marketplace rules which require marketplaces like Amazon and Walmart to account for GST on your behalf. Marketplace collection generally applies only to marketplace orders; you’re still responsible for sales tax on DTC and other channels.

Australia: GST Registration for Online Sellers

There are two forms of registration in Australia – a simplified registration and a Standard Registration. The simplified registration can be used provided you are selling low-value goods (under A$1,000) and don’t have any GST to reclaim. You simply report the value of your sales and pay 10% GST. The registration threshold in Australia is $75,000.

There are also marketplace rules which make the marketplace responsible for collecting and remitting GST and these sales do not count toward your $75,000 registration threshold.

New Zealand: GST Rules for E-Commerce

The rate of GST in New Zealand is 15% and the registration threshold is NZ$60,000. Marketplaces are also responsible for collecting GST on your behalf.

H2: Canada: GST, HST, and PST Compliance

Like the States, Canada has a system of Provincial jurisdiction, but with four different sorts of sales tax – GST and Harmonised Sales Tax (“HST”). Quebec has its own QST and provinces such as British Columbia, Manitoba and Saskatchewan levy Provincial Sales Tax (“PST”). HST is a blended federal/provincial sales tax that includes a 5% federal component and a provincial component of 8 or 10 percent.

The registration threshold is CAD 30,000 per quarter.

Japan: Consumption Tax Registration for Non-Resident Businesses

In Japan, it’s Consumption Tax, is levied at 10%. The registration threshold is YEN 10m, based on the base year of two years prior to the tax year. Non-resident businesses will require a Japanese resident tax agent (a service we can provide).

How Our International VAT Accountancy Service Works

We make it simple to stay compliant when selling globally. Here’s what to expect:

1. We review your sales and fulfilment model
   We’ll map your sales channels, platforms, and warehouse/storage locations to identify where registrations are needed.
2. We handle registrations and local setup
   We prepare and submit registration forms and documentation for the countries where you’re required to register. This includes appointing fiscal reps or tax agents if required.
3. We manage ongoing returns and filings
   Once registered, we handle regular filings and keep you updated on any local changes in VAT/GST law.
4. We coordinate with marketplaces where needed
   If Amazon, eBay, or another marketplace handles the tax for you, we factor that into your compliance setup and filings.
5. You get a clear summary each month
   We provide transparent, reconciled reporting, so you always know your VAT/GST position in each country.

You may be interested in reading: Registration for Making Tax Digital
​