Tax Thresholds for Digital Products

A sales tax registration threshold is a fixed amount at which you must register and start collecting taxes in a country. We wrote about this in detail on our blog here.

A country (or even province or state) can have a sales tax registration threshold. The good news is Quaderno automatically notifies you when you reach a sales tax registration threshold. You can also keep track in the Thresholds report.

The following applies to foreign sellers of digital goods. We always recommend checking if your product falls under a special category.

Countries with no threshold

Yes, there are some countries with no sales threshold! This means that even if you have just one sale in one of these countries, you are expected to register, collect, and remit tax to the appropriate authorities in that country. Quaderno will automatically notify you when you make your first sale to one of these countries. These countries are:

Albania
Bahrain
Belarus
India
Russia
Saudi Arabia
Serbia
South Korea
Turkey
UAE
All EU countries

Countries with thresholds based on local sales

In some countries, you are expected to collect tax only once you reach a specified sales threshold. The threshold is based on local sales. For example, if you sell AUD $75,000 to customers in Australia, then you should start collecting taxes from those customers. These countries are:

Australia A$75,000
Iceland ISK 2,000,000
Japan JPY 10,000,000
New Zealand NZD $60,000
Norway NOK 50,000
South Africa ZAR 1,000,000  
Taiwan NTD 480,000

Countries with thresholds based on global sales

In some countries, you are expected to collect tax only once you reach a specified sales threshold based on global sales. For example, if you sell CHF 100,000 in global sales, you should start collecting taxes from customers in Switzerland. These countries are:

Switzerland CHF 100,000

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