Tax registration threshold

Depending on where you’re selling, your business or employees physical presence, and how much you’re selling each year, you would have the obligation to register your business on a tax jurisdiction to start tax collection and tax filing there.

These tax registration rules or conditions are called tax registration thresholds.

The most typical threshold is to surpass a certain amount of sales to residents within a certain country. However, thresholds can vary wildly, here are some examples:

  • Jurisdictions like India, Russia, and South Korea don’t have a sales threshold when it comes to digital goods, which means that ideally you should register there before your first sale.
  • On Europe, a VAT threshold for distance selling of EUR 10,000 applies. You would need to choose one EU country to register on, get a VAT number, and start filing taxes using the EU VAT One-Stop Shop schemes (OSS and IOSS). If you’re interested on this case, don’t miss the EU VAT guide from our blog!
  • Some countries allow foreign businesses to register for taxes anyway, even if they fall below the threshold. You may want to do this for claiming tax refunds or when your business it’s close to surpass the threshold.

You get the idea. For a complete list of worldwide tax registration thresholds and each tax jurisdiction’s ins and outs, check our Worldwide Tax Guides resource on our website.

The good news is that our turnover report will notify you whenever your business surpass a tax registration threshold.

From there, you’ll have to contact your tax accountant or the local tax authority to register there, and then enable that tax jurisdiction in Quaderno. After that, our reports will help you file your taxes quarterly or as often as the tax jurisdiction requires.

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