

When selling software internationally, how do you collect taxes for each country? - amichail

This is in reference to selling software via the internet.<p>Which countries require you to collect taxes?  What is the process involved?
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trevelyan
IANAL, but your obligations for corporate tax payment depend on where you
incorporate as a business. If you are planning to do a significant amount of
international business you may want to register your company in a locale like
Hong Kong which only requires taxes paid on local sales.

The downside to registering a company internationally is that it is a massive
pain in the ass to set up payment processor systems, create corporate accounts
and handle paperwork. Especially if you have to deal with US banks and payment
processors. Many will just refuse to support non-American businesses. Also
bear in mind if you own a majority share in your business you may need to pay
personal taxes on any company profits even if the company is registered
abroad.

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jim_lawless
For the small utilities that I sell, I go through a payment-processor:
Regsoft. Regsoft adds the proper VAT to the shopping-cart total when the
prospective buyer is in the process of paying for a license or licenses for
the given program.

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NonEUCitizen
How much does Regsoft charge you?

