Legal, Tax, and Accounting May 22, 2020

B2B sales taxes and VAT

hellfoo

Hello, I am new to this website, not sure if posting in correct location

What are good resources to read about sales taxes and what we have to collect as startup?

We have online tool used mainly by businesses, they use the tool to manage their clients. We were told we might need to collect VAT and taxes, but where ever I read I can not find anything about this

  1. 1

    We have clients: in US, china, france, Egypt and South Africa. As we were rolling out, we made everything free. But its time for full rollout. We are incorporate in HK.

  2. 1

    Fastspring and Paddle do the collection for you and keep you compliant in the process, if that's what you need.

  3. 1

    Save yourself the hassle and get a tax advisor!

    We can all only guess here unless you provide some more information. At least we'll need to know the country/state you're incorporated in, and where your clients are based.

    Your best bet is to assume that you need to charge/declare/discharge VAT. I know several possible exceptions for not charging VAT (e.g. special regulations for small businesses, or reverse charge agreements between different countries) but then you typically would still have to properly declare your taxes at some point.

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