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Taxability of online courses depends on format and interaction. Automated or pre-recorded courses are generally taxed, while live webinars, human-led evaluations, or credit-earning educational programs may be exempt from VAT, GST, or sales tax.
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US sales tax varies by state. Under SSUTA guidelines, live online educational services with real-time interaction or instructor evaluation are exempt, while automated pre-recorded courses are taxable across participating states.
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EU VAT applies uniformly, taxing both automated and live interactive online courses (as of January 2025), except credit-bearing educational programs. VAT must be charged at the customer’s country rate under destination-based taxation.
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Australia and New Zealand impose broad GST rules covering all online courses regardless of format. However, tax only applies if annual sales exceed A$75,000 in Australia or NZD $60,000 in New Zealand.
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