Digital Taxes Around The World

One thing’s for sure if you’re a digital business: The rules about digital tax worldwide are constantly changing, and yes, they do affect you.

A widespread trend happening across countries is that governments want to charge tax based on the location of the purchaser of the product. These are also commonly called “internet sales tax” rules.

You might be kicking back in your country thinking you’re okay paying taxes locally, but in fact you do need to consider sales tax, VAT, and GST in other countries.

Sounds a bit complicated when you consider the ease and speed with which we do digital business across borders, doesn’t it?

In this article, we're diving headfirst into the complexities of digital tax laws around the world. We'll do our best to offer a clear picture of how these regulations shape the modern business environment as we know it today and, more importantly, your life as a business owner. Let's jump in!

Table of contents

• Albania
• Algeria
• Andorra
• Angola
• Argentina
• Armenia
• Australia
• Azerbaijan
• Bahamas
• Bahrain
• Bangladesh
• Barbados
• Belarus
• Benin
• Bhutan
• Bolivia
• Bosnia & Herzegovina
• Cambodia
• Cameroon
• Canada
• Chile
• Colombia
• Ivory Coast
• Costa Rica
• Dominican Republic
• Ecuador
• Egypt
• European Union
• Georgia
• Ghana
• Iceland
• India
• Indonesia
• Israel
• Japan
• Kazakhstan
• Kenya
• Kosovo
• Kyrgyzstan
• Laos
• Malaysia
• Mauritius
• Mexico
• Moldova
• Nepal
• New Zealand
• Nigeria
• Norway
• Oman
• Palau
• Paraguay
• Philippines
• Puerto Rico
• Russia
• Saudi Arabia
• Senegal
• Serbia
• Singapore
• South Africa
• South Korea
• Suriname
• Switzerland
• Taiwan
• Tajikistan
• Tanzania
• Thailand
• Tunisia
• Turkey
• Uganda
• Ukraine
• United Arab Emirates
• United Kingdom
• United States
• Uruguay
• Uzbekistan
• Vietnam
• Zimbabwe
• Final Thoughts

Albania

As of January 2015, Albania has a 20% VAT on digital businesses. There is no registration threshold, so foreign businesses must register for VAT in Albania upon their very first B2C sale. They must also hire a local tax agent.

Algeria

Algeria levies a 19% VAT on electronic services from non-resident businesses.

There is no registration threshold. This means foreign businesses must register for VAT in Algeria upon their very first sale.

Andorra

Andorra implemented a 4.5% VAT rate for non-resident providers of digital and electronic services in January 2013 and, as such, boasts the lowest rate in Europe. The Principality of Andorra has a sales threshold of €40,000 and taxpayers must create VAT invoices for their customers.

Angola

Angola has a 14% VAT on all sales, including foreign providers of digital services. There is no registration threshold, so foreign businesses must register for VAT in Angola upon their very first B2C sale.

For B2B sales, there's the option of using the reverse-charge mechanism.

Argentina

Currently, there is no obligation to VAT register as the government has opted to use a VAT Withholding Tax. There is no registration threshold, so foreign businesses that need to register for Argentinian VAT, which is at 21%, must do it upon their very first sale.

Armenia

Armenia has a 20% VAT rate on all digital services supplied by foreign businesses to local customers.

The registration threshold is AMD 115 million. This means foreign businesses that sell to Armenian customers must watch their total B2C sales in the country. When the total surpasses the threshold, that foreign business is required to register for VAT in Armenia.

Australia

Australia has a 10% GST on sales of low-value goods to its consumers by non-resident eCommerce companies. This includes:

Digital products such as streaming or downloading movies, music, apps, games, and e-books Services such as architectural or legal services. If you meet the registration turnover threshold of A$75,000 and sell these supplies B2C, you are required to register for GST.

For further information, take a look at the Australian Taxation Office (ATO) site.

Azerbaijan

In January 2017, the Azerbaijan Ministry of Economy's State Tax Service implemented VAT obligations for non-resident providers of digital services to consumers. At the moment, there is no requirement for VAT registration, as the government has chosen to employ a VAT Withholding Tax system. The current VAT rate is 18%.

Bahamas

The Bahamas levies VAT on electronic services provided by non-resident sellers. The VAT rate is 10%.

The registration threshold is BSD 100,000. This means foreign businesses that sell to Bahamian customers must watch their total B2C sales in the country. When the total surpasses the threshold, that foreign business is required to register for VAT in the Bahamas.

Bahrain

Bahrain is a member of the Gulf Cooperation Council (GCC) and has implemented the group’s policy on digital VAT for foreign sellers.

The VAT rate in Bahrain for digital products is 10%, with no registration threshold. Businesses selling B2C must register for VAT within 30 days of their first taxable sale in Bahrain. Businesses selling only B2B do not have to register, though, since Bahrain buyers will handle VAT themselves through the reverse-charge mechanism.

Read more on the National Bureau for Taxation (NBT), Bahrain's tax agency.

Bangladesh

Bangladesh has a 15% VAT on digital sales. The VAT registration threshold is BDT 30M, including for foreign suppliers.

Foreign suppliers must select a local tax representative and get approval from the Bangladeshi tax commissioner. (Search for form Mushok 3.4.) The reverse-charge method is available for B2B transactions.

For further information, head to the National Board of Revenue of Bangladesh.

Barbados

Since December 2019, non-residents providing electronic services in Barbados do not have a distinct VAT registration process; they adhere to the same requirements as resident businesses. These providers must complete registration through the Revenue Authority's Tax Administration Management Information System (TAMIS) once they approach the annual VAT registration threshold of BBD 200,000. The current VAT rate stands at 17.5%.

Belarus

Belarus levies a 20% VAT on digital goods and services sold to consumers in the country.

There's no sales threshold, so every foreign business is expected to register for VAT, then collect and remit taxes according to the local guidelines. Business owners can register for VAT themselves, or elect to hire a local tax agent. Some registration materials must be translated into Russian, so hiring a tax representative could be helpful!

For more information, check out the Belarus Ministry of Taxes and Duties website.

Benin

Starting October 1, 2023, both residents and non-residents are required to levy VAT on digital services for consumers. The VAT rate in Benin is 18%, with no registration threshold. This rule is applicable to B2C transactions. Businesses selling only B2B do not have to register, though, since Benin buyers will handle VAT themselves through the reverse-charge mechanism.

Bhutan

Since July 2022, Bhutan has introduced a Sales Tax for non-resident providers offering digital services to its consumers. Such providers are now required to register and report to the tax authorities upon exceeding an annual registration threshold of Nu 5 million. The current Sales Tax rate stands at 7%.

Bolivia

Bolivia requires all non-resident businesses to collect 13% VAT on sales of digital services to local customers. There is no registration threshold, so foreign businesses must register for VAT in Bolivia at 13% upon their very first B2C sale.

Bosnia and Herzegovina

In 2023, the Balkan state of Bosnia and Herzegovina, introduced VAT on digital services for non-residents, requiring foreign providers to complete registration, as well as collect and remit a 17% VAT to the Indirect Taxation Authority.

In cases where the customer is a registered VAT taxpayer in Bosnia and Herzegovina, the reverse charge mechanism can be employed. There’s also a sales threshold of BAM 50,000 per year.

Cambodia

In 2021 Cambodia introduced a 10% VAT to non-resident sellers with a threshold of KHR 250 million. This means foreign businesses that sell to Cambodian customers must watch their total annual sales. When the total surpasses the threshold, that foreign business is required to register for VAT in Cambodia.

Cameroon

Cameroon requires non-resident businesses to charge and collect 19.5% VAT if they provide physical goods and electronic services to local consumers and businesses.

The registration threshold is XAF 50 million in digital goods sales. This means foreign businesses that sell to Cambodian customers must watch their total annual sales. When the total surpasses the threshold, that foreign business is required to register for VAT in Cameroon.

Canada

Digital taxes became an election issue in Canada in late 2015, and more provinces are passing sales tax laws, such as Quebec, Saskatchewan or British Columbia.

Find more information in this overview of charging and collecting sales tax and in our Canada GST/HST Guide.

British Columbia

British Columbia has a Provincial Sales Tax (PST) on sales made by non-resident providers of digital services to local consumers. The Canadian Revenue Agency confirms the PST rate is 7%. The annual registration threshold is CAD $10,000.

Read more on the Small Business Guide to PST for British Columbia.

Manitoba

Manitoba also has a Provincial Sales Tax (PST) of 7% on sales made by non-resident providers of digital services to local consumers.  The annual registration threshold is CAD $10,000.

Quebec

Any digital service suppliers located outside of Quebec (either elsewhere in Canada or abroad) will have to register, collect, and remit Quebec Sales Tax (QST), if their annual sales exceed the CAD $3,000 threshold. The QST rate is 9.975%.

Read more on Revenue Quebec, Quebec’s tax agency.

Saskatchewan

Saskatchewan imposed its Provincial Sales Tax (PST) on electronic services in January 2019. Saskatchewan PST is currently 6% and there is no sales threshold.

Read more on Saskatchewan's Ministry of Finance.

Chile

Since June 2020, Chile has imposed a 19% VAT on non-resident sellers. There is no registration threshold, so foreign businesses must register for VAT in Chile upon their very first sale.

The tax is collected according to Chile VAT registrations of the non-resident provider, or on a withholding basis by payment providers, including credit card companies.

Colombia

Colombia levies a 19% VAT on digital services from foreign suppliers. VAT registration in Colombia is actually optional for foreign businesses that are providing digital products and services. That’s because the burden of VAT falls on local banks, domestic credit card issuers, or payment processors via Witholding VAT.

Ivory Coast (Côte d'Ivoire)

The Côte d'Ivoire has an 18% VAT rate for digital services provided by foreign sellers. There is an annual sales registration threshold of XOF 200M. Registration requires a local tax representative.

Costa Rica

Costa Rica requires card issuers, such as Visa and American Express, to collect taxes for you, but only if your business is not already registered for local taxes and is not required to do so.

If you voluntarily register your business, then you become responsible for collecting Costa Rican VAT. Once you’re registered for taxes, you’re expected to charge 13% VAT on every sale to a Costa Rican resident.

Dominican Republic

The Dominican Republic, a Caribbean island nation, has integrated VAT obligations for international providers offering digital services to local consumers. The existing VAT rate within the Dominican Republic stands at 18%. There is no sales threshold at the moment, meaning businesses must register for VAT upon their very first sale.

Ecuador

Ecuador has withdrawn the option to use withholding VAT on digital services purchased via non-resident marketplaces or payment aggregators. VAT registration in Ecuador is actually optional for foreign businesses that are providing digital products and services.

That’s because the burden of VAT falls on local banks, domestic credit card issuers, or payment processors. Any foreign business can optionally register for VAT collection. If they don't do it, then the payment processor or the marketplace must withhold the VAT rate and pay it to the local tax agency. The VAT rate in Ecuador is currently 12%.

Egypt

Egypt introduced a 14% VAT for non-resident sellers in 2021.

The registration threshold is EGP 500,000. This means foreign businesses that sell to Egyptian customers must watch their total annual sales. When the total surpasses the threshold, that foreign business is required to register for VAT in Egypt.

European Union

We’ve written at length about what digital sellers need to know about EU VAT. It’s worth a quick refresher, though, just to make sure you’ve got the key points. These rules have been in place since January 2015:

• Digital businesses who sell to European consumers must apply, collect, and remit VAT against all customer invoices.
• If you sell to VAT-registered businesses, they are exempt under a reverse-charge scheme, but you must have their VAT registration details.
• There is no “EU” VAT rate. The rate you need to charge is the rate of the country in which your customer resides. This means you need to be set up to apply the correct VAT rate to the right country.
• If collecting and paying out VAT to each individual jurisdiction sounds like a headache, you can get set up with an OSS (one-stop shop) to administer your VAT returns and distribute what you have collected.

You can view information and requirements, including links for rules specific to member states, straight from the European Commission here.

Georgia

Since October 2021, Georgia has maintained a VAT rate of 18% with no tax registration thresholds, meaning that even if you make just one sale in the country, you must register your business for Georgia VAT.

Georgia implemented this VAT obligation on non-resident providers of digital or electronic, broadcast and telecommunications services, following the European Union and OECD recommendations.

Ghana

Once your sales do surpass GHS 200,000, then you must register for VAT and comply with all the Ghanaian rules around tax rate and collection, invoices, and filing returns. The standard VAT rate in Ghana is currently 15%.

Iceland

The Icelandic Government introduced the VAT rules for electronic suppliers in November 2011.

Here’s what you need to know:

• The standard Icelandic VAT rate of 24% applies to all sales related to electronic services except e-books, which are taxed at the reduced VAT of 11%.
• The VAT registration threshold is 2.000.000 ISK in any consecutive 12-month period.

India

India classifies all digital products under a different, and very long, name: Online Information Database Access and Retrieval services (or OIDAR).

All products and services are subject to an 18% GST, and there's no threshold for tax registration. That means that if you're selling to customers in India, you must register for Indian GST and charge 18% tax when selling B2C.

For further information, take a look at our Indian tax guide.

Indonesia

Indonesia levies an 11% VAT on all online transactions.

The registration threshold is IDR 600,000,000. This means foreign businesses that sell to Indonesian customers must watch their total annual sales. When the total surpasses the threshold, that foreign business is required to register for VAT in Indonesia.

Israel

Israel requires all non-resident businesses to collect 17% Israeli VAT on sales of digital services to local customers. There is no registration threshold, so foreign businesses must register for VAT at 17% upon their very first B2C sale.

Japan

The Japanese tax, known as “consumption tax”, was introduced for digital business in October 2015. The annual threshold for this tax is JPY 10 million.

Here’s what you need to know:

• The consumption tax rate is 10%.
• It is to be charged on all B2C e-commerce transactions delivered by foreign businesses to Japanese consumers.
• Foreign companies must register and designate a tax agent for themselves in Japan.
• B2B transactions apply a reverse-charge mechanism like other countries, where the recipient deals with the tax, not the seller.

Like other countries, the definitions of which electronic products and services are included in JCT (Japan Consumption Tax) are fairly broad. Digital services such as e-books and courses do count under this law. You can check out an English version of their policy changes here.

Kazakhstan

Since January 2022, Kazakhstan levies a 12% VAT on all foreign companies selling goods and providing online services via the internet or other telecommunication networks to local customers.

There is no registration threshold, so foreign businesses must register for VAT in Kazakhstan upon their very first B2C sale.

Kenya

In 2021 Kenya introduced a 16% VAT on all non-resident sellers transactions.

The registration threshold is 0. This means foreign businesses must register for VAT in Kenya upon their very first sale.

Kosovo

Kosovo requires all non-resident businesses to collect 18% VAT on sales of digital services to local customers.

There is no registration threshold, so foreign businesses must register for VAT in Kosovo upon their very first B2C sale.

Kyrgyzstan

Since January 2022, VAT is applied to the sale of e-services to local Kyrgyz consumers by non-resident businesses. The rate for digital services is 12%.

There is no registration threshold, so foreign businesses must register for VAT in Kyrgyzstan upon their very first B2C sale.

Laos

Laos has a 7% VAT rate on all digital services supplied by foreign businesses to local customers.

The registration threshold is LAK 400 million. This means foreign businesses that sell to Laos customers must watch their total B2C sales in the country. When the total surpasses the threshold, that foreign business is required to register for VAT in Laos.

Malaysia

Malaysia levies a 6% VAT on digital services from foreign providers.

The registration threshold is RM 500.000 (circa USD$120,000) over a period of 12 months. This means foreign businesses that sell to Malaysian customers must watch their total annual sales. When the total surpasses the threshold, that foreign business is required to register for VAT in Malaysia.

Mauritius

In August 2020, Mauritius, an island state in the Indian Ocean, enacted legislation to enforce its VAT on non-resident suppliers offering digital or electronic services to consumers at a rate of 15%. There is a VAT registration threshold of MUR 6 million per year.

For B2B transactions, a zero-rated approach is applied, enabling resident businesses to report the transaction through the reverse-charge mechanism. It’s important to note that providers cannot bypass VAT registration solely by engaging in B2B transactions – they must undergo VAT registration to properly report their sales.

Mexico

Since June 2020, Mexico has imposed a 16% VAT on foreign providers, with no threshold. Non-residents must appoint a local representative to help with VAT in Mexico.

Moldova

Moldova does not have a sales registration threshold. This means that even if you make just one sale in the country, you must register your business for Moldovan VAT. Once you’re registered for taxes, you’re expected to charge 20% VAT on every sale to a Moldovan resident.

Nepal

Nepal introduced a 13% VAT for non-resident sellers in July 2022. The registration threshold is NPR 2 million. This means foreign businesses that sell to Nepali customers must watch their total annual sales. When the total surpasses the threshold, that foreign business is required to register for VAT in Nepal.

New Zealand

New Zealand introduced internet tax laws in October 2016.

The New Zealand GST rate is 15%. The registration threshold is NZD $60.000 or more in sales across a consecutive 12-month period. Businesses who reach this level will be required to register for GST.

Digital sellers who provide their services to New Zealand-based consumers must also collect two non-conflicting pieces of evidence proving the customer location (for example billing address, IPN location, bank details or country code of phone number). This is very similar to EU VAT requirements.

Nigeria

Nigeria applies a 7.5% VAT on foreign providers. The registration threshold in Nigeria is NGN 25,000. This means foreign businesses must register for VAT in Nigeria once they surpass NGN 25,000 in sales across a consecutive 12-month period.

Norway

Norway is one of the first countries to introduce tax rules on the digital economy, with laws going into effect back in July 2011.

The Norwegian VAT rate is 25%. Businesses must register for Norwegian VAT if their annual B2C sales in the country exceed the tax threshold of NOK 50,000. Regarding B2B services, they operate a similar scheme to the EU, where VAT is accounted for by the purchaser under a reverse-charge mechanism.

VOES (or VAT on Electronic Services) is where you need to look to ensure you're compliant with their rules.

Oman

Oman requires all non-resident businesses to collect 5% VAT on sales of digital services to local customers. There is no registration threshold, so foreign businesses must register for VAT in Oman at 5% upon their very first B2C sale.

Palau

After the Republic of Palau replaced the previous Gross Revenue Tax with a 10% Goods and Services Tax (GST), GST is now applicable to the offshore provision of digital or remote services to consumers. There's a sales threshold of USD $300,000, and the GST rate is at 10% as of January 2023.

Paraguay

Paraguay does not have a sales registration threshold. This means that even if you make just one sale in the country, you must register your business for Paraguayan VAT. Once you’re registered for taxes, you’re expected to charge 10% VAT on every sale to a Paraguayan resident.

Philippines

The Philippines has an annual sales registration threshold of PHP 3,000,000. Once your sales surpass PHP 3,000,000, then you must register for VAT and comply with all of the Filipino rules around tax rate and collection, invoices, and filing returns. You must also sign up for VAT through a local tax representative. The Filipino VAT rate is 12%.

Puerto Rico

The threshold in Puerto Rico is $100,000 in annual sales or 200 separate sales transactions, whichever your business reaches first. To learn more about how this works, check out the Ultimate Guide to US Economic Nexus. The sales tax in Puerto Rico is 11.5%.

Russia

Russia introduced new laws to tax digital transactions in January 2017.

The Russian VAT rate of 16.67% applies to all sales. There's no registration threshold, and there is no reverse-charge mechanism available. Therefore, all foreign businesses that sell digital products to Russia-based consumers must collect VAT and report to Russian tax authorities.

Sellers must also collect two non-conflicting pieces of evidence proving the customer location (for example billing address, IPN location, bank details or country code of phone number).

Saudi Arabia

Saudi Arabia is a member of the Gulf Cooperation Council (GCC) and has implemented the group's policy on digital VAT from foreign sellers.

The Saudi Arabian VAT rate for digital products is 15% with no registration threshold. Foreign businesses must register for VAT in Saudi Arabia.

Senegal

Senegal has introduced an 18% VAT on all non-resident sellers transactions.

The registration threshold is 0. This means foreign businesses must register for VAT in Senegal upon their very first sale.

Serbia

Since April 1, 2017, Serbia levies a 20% on non-resident providers of electronic services. There is no registration threshold, so foreign businesses must register for VAT in Serbia upon their very first sale. Foreign businesses may need to hire a local tax representative.

For further information, take a look at the Tax Administration of Republic of Serbia site.

Singapore

Singapore levies a 8% VAT rate on foreign suppliers of digital services who reach two different thresholds.

• The first is that their annual global turnover exceeds SGD $1,000,000.
• The second is that their sale of digital services to Singapore consumers exceeds $100,000.

If both thresholds are met, then the foreign business must register for VAT in Singapore.

South Africa

South Africa introduced their VAT rules for electronic suppliers in July 2014. They do have a lower limit, however, below which VAT is not required to be charged or registered for. The lower limit is ZAR 1,000,000.

Unlike other countries, South Africa does not make a distinction between B2C and B2B sales. All foreign businesses are subject to their 15% VAT charge as of the very first sale to South African customers.

South Korea

South Korea levies a 10% VAT. There is no registration threshold, so foreign businesses must register for VAT in South Korea upon their very first sale.

Suriname

The sales threshold is SRD 500.000, so once you pass that figure, you must register for VAT and comply with all the Surinamese rules around tax rate and collection, invoices, and filing returns. The Suriname tax rate is 10% VAT.

Switzerland

The Swiss Federal Tax Authority (FTA) introduced their VAT rules for the supply of services from non-resident companies in January 2010. The VAT is the standard Swiss rate of 7.7% and their registration threshold is CHF 100.000 in global sales.

For more information, take a look at the Swiss Federal Tax Authority (FTA).

Taiwan

Since May 2017, Taiwan has levied a 5% VAT on digital services provided to consumers by foreign businesses. The registration threshold is NTD 480,000. This means foreign businesses that sell to Taiwanese customers must watch their total annual sales. When the total surpasses the threshold, that foreign business is required to register for VAT in Taiwan.

‍For further information, take a look at the Taiwan Taxation Administration site.

Tajikistan

Tajikistan introduced the requirement for foreign sellers and marketplaces providing digital or electronic services to register and charge 18% VAT in January 2021. There is no sales threshold in Tajikistan, so non-residents must register online with the Tax Committee from their first sale.

Tanzania

There is no VAT registration threshold, so this means that even if you make just one sale in the country, you must register your business for Tanzanian VAT. The current rate is 18%.

Thailand

Since September 2021, Thailand has applied a 7% VAT to non-resident sellers.

The registration threshold is THB 1.8 million (over €60,000) per year. This means foreign businesses that sell to Indonesian customers must watch their total annual sales. When the total surpasses the threshold, that foreign business is required to register for VAT in Thailand.

Tunisia

Tunisia has a 19% VAT rate for all digital services supplied by non-resident businesses.

The registration threshold is 0. This means foreign businesses must register for VAT in Tunisia upon their very first B2C sale. B2B transactions can use the reverse-charge mechanism.

Turkey

Since January 2018, Turkey levies a 20% VAT on digital goods and services sold to Turkish consumers.

If selling to a VAT-registered business in Turkey, then the foreign business does not need to charge VAT. The buyer will handle all Turkish VAT through the reverse-charge mechanism.

To learn more, visit the website of Turkey's Revenue Administration.

Uganda

Uganda levies an 18% VAT on all online transactions. The registration threshold is UGX 150,000,000. The registration threshold is UGX 150,000,000, this means foreign businesses must register for VAT in Uganda when the total surpasses that threshold.

Ukraine

Ukraine requires 20% VAT added to all supplies of electronic services by non-residents to Ukrainian private individuals.

The registration threshold is UAH1 million for the preceding calendar year. This means foreign businesses that sell to Ukrainian customers must watch their total taxable sales. When the total surpasses the threshold, that foreign business is required to register for VAT in Ukraine.

United Arab Emirates

The UAE has adopted the GCC's Unified VAT Agreement about digital taxes on foreign sellers.

The UAE VAT rate for digital products is 5% with no registration threshold. Foreign businesses must register for VAT. To do so, first create an e-Services account with the Federal Tax Agency, and then complete the VAT registration form.

United Kingdom

The United Kingdom does not have a sales registration threshold. This means that even if you make just one sale in the country, you must register your business for British VAT. The British VAT rate is currently 20%.

United States

The US is undergoing a widespread change in tax policy when it comes to digital products and online businesses.

Some states do charge sales tax on SaaS and digital products. For an up-to-date list of these states, please read US Sales Taxes for Digital Products.

Thanks to a Supreme Court ruling that allows state governments to tax out-of-state sellers, individual states across America are adopting a new internet tax law called economic nexus.

Uruguay

As of January 2018, Uruguay has a VAT rate of 22% and no sales tax threshold. This means that even if you make just one sale in the country, you must register your business for Uruguayan VAT.

Uzbekistan

Uzbekistan applies a 12% VAT to all online transactions. The registration threshold is 0. This means foreign businesses must register for VAT in Uzbekistan upon their very first sale.

Vietnam

Since January 2022, Vietnam levies a 10% VAT rate on e-commerce and digital businesses who are not physically located in the country. The registration threshold is 0. This means foreign businesses must register for VAT in Vietnam upon their very first sale.

Zimbabwe

Once your sales surpass the threshold of USD $40,000 then you must register for VAT and comply with all of the Zimbabwean rules around tax rate and collection, invoices, and filing returns. The VAT rate in Zimbabwe is currently 15%.

Final Thoughts

As a digital business owner, you really do need to recognize and understand where foreign taxation rules might apply to your business.

While it’s unclear what the consequences of non-compliance might look like in each country, in general, tax departments don’t muck around.

For most taxation rules, the best source to ensure you don’t get into any trouble will be a qualified accountant or agent within that country. Quaderno specializes in these tax issues – contact us today to ensure you’re compliant!