tech-company, saas, tax-structureI’ll be setting up a B2C SaaS system in the coming months, and only really offering it to those who live in the USA, Canada or the UK.
I understand paying tax here in the UK on my earnings, but what about the earnings from people living in the USA and/or Canada?
I have tried Googling this but I didn’t really find any information that was helpful.
If you’re talking about VAT, then UK being in European Economic Area and USA not, means you can sell products and services to companies and customers outside of EEA tax-free 0% VAT and they are usually reliable for declaring the taxes themselves.
This is a great UK specific article: https://www.gov.uk/online-and-distance-selling-for-businesses/selling-overseas
However if you sell to customers in other EU countries, then due to a recent tax scheme change it’s a bit more complicated and you basically have to work with a system allowing you to pay the VAT to the customers residence country.
See also:
http://www.forbes.com/sites/janetnovack/2014/05/15/european-vat-10-things-online-sellers-need-to-know-about-taxes-on-digital-goods-and-services/#7dc6636c4290
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