3 ms·
Anyone else in a similar position? How do you handle sales tax globally? There are two sides to that issue, IMHO. One is whether you should have to handle sal
by Silhouette 7y ago
Anyone else in a similar position? How do you handle sales tax globally?
There are two sides to that issue, IMHO.
One is whether you should have to handle sales tax globally in the first place. If you have no presence of any kind in a particular country, why should you be legally required to collect and remit whatever taxes a government where you have no representation or influence happens to decide are due, particularly if you have only a tiny amount of custom there and the necessary registrations/filings/etc. would cost you more than the entire profit you make from those sales? This is an ethical question as much as anything, because in practice legal agreements between friendly governments might cause you problems if you don't play ball and you're big enough to get noticed but not big enough to have your own army of lawyers and accountants to fight back.
As a practical matter, if you do decide you need to collect taxes everywhere according to whatever local rules they have, I suspect it's too complicated for anything but a specialist organisation to handle right now. Everyone and their brother is jumping on the bandwagon and introducing online sales taxes, and you can't become an accountant and a lawyer in every nation, state, dependent territory, county or city in the world that might have its own tax rules just in case one day you get a customer from there.
This has pushed us very hard towards the merchant of record model for new business ventures we're setting up at the moment, though it's not our only motivation; declining standards with other payment services we've used in the past are also a factor. However, the first MoR business we looked up that seemed to have a good reputation (Paddle) had such absurd legal terms that we ran away and didn't look back, so we're still searching for a viable solution.