80+ countries tax digital services

Most major economies require foreign SaaS companies to collect and remit VAT, GST, or sales tax on digital services sold to local customers.

No minimum threshold in most regions

Unlike physical goods, digital services often have no de minimis threshold. In many countries, a single sale can trigger registration and filing obligations.

Rates vary from 5% to 27%

Tax rates on digital services range widely, from 5% in countries like Japan and Taiwan to 27% in Hungary. Getting rates wrong means audit exposure.

Registration & filing

• Identify countries where you have tax obligations based on customer location and sales volume.
• Register for VAT/GST in each required jurisdiction.
• Appoint fiscal representatives where required.
• Track filing deadlines: monthly, quarterly, or annually depending on jurisdiction.
• Manage multi-currency settlement process in multiple territories on frequent basis.

Customer location evidence

• Collect at least two non-contradictory pieces of evidence per transaction.
• Accepted evidence: billing address, IP geolocation, bank country code, payment method country etc.
• Store location evidence for 7-10 years depending on jurisdiction.
• Document your evidence collection methodology for auditors.

Invoice requirements

• Supplier name, address, and tax identification number.
• Customer name and address (tax ID for B2B where applicable).
• Invoice date, unique sequential number, and currency.
• Description of services, net amount, tax rate, tax amount, and gross total.

B2B transactions

• Validate customer tax IDs before applying reverse charge or zero-rating.
• Store validation responses with timestamps as audit evidence.
• Include appropriate reverse charge or exemption notation on invoices.
• Report B2B sales correctly. Some jurisdictions require separate reporting.