Even in low-tax hubs, consumption taxes catch digital businesses. This is the compliance layer most founders underestimate.
Place of supply beats headquarters. For B2C digital services, many regimes tax where the customer is. That means remote sellers may need to register, charge VAT/GST, and file locally—even without a PE.
Thresholds & simplified schemes. Jurisdictions often have revenue thresholds or special non-resident schemes (verify latest). Keep country-level sales ledgers to monitor triggers.
Invoices & evidence. Two-piece location evidence (IP address, billing address, bank BIN) is common. Mismatches attract queries.
Platforms vs. merchants. Marketplaces may be “deemed suppliers” in some regimes. If you’re a platform, the compliance load multiplies. If you’re a merchant on a platform, confirm who is collecting/remitting.
Refunds, credit notes, and FX. Build these into your ERP; errors compound over quarters.
Case snapshot. A Singapore SaaS sells to EU/UK/AU consumers. It enrolls in each region’s non-resident scheme, configures tax engines to location rules, and documents evidence.
FAQ
- No local entity = no VAT? Wrong. Many rules tax at customer location.
- B2B exemptions? Often with valid VAT IDs; still verify place-of-supply rules.
Editor’s Note: VAT is operational—solve it in your billing stack, not your year-end file.
Tags: VAT, GST, Digital Services, Compliance