Understanding Sales Tax Obligations for International Customers

• Selling outside the U.S. does not exempt you from sales tax obligations
• Europe has a value-added tax (VAT) applied at each stage of the supply chain
• VAT rates are generally applied at a local level with exceptions on certain products
• Place-of-supply rules determine where and when VAT applies and who is responsible for reporting
• Different rules apply for goods versus services and for businesses versus private individuals
• There is a standard VAT registration for each country, but a simplified registration (One Stop Shop) is available in some cases
• VAT returns must be filed regularly depending on the country and other factors
• Canada has a Goods and Services Tax (GST) and Provincial Sales Tax (PST) in some provinces
• The Harmonized Sales Tax (HST) combines the GST and PST in certain provinces
• The province of a customer’s residence determines the sales tax rate to charge
• Online businesses selling into Canada, excluding small suppliers, must register for a GST/HST account with the Canada Revenue Agency

Source: taxconnex.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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