In which countries do I need to collect taxes?

Generally speaking, you are required to collect taxes in the country or region where your business is located, as well as in all tax jurisdictions where you meet certain conditions.

The conditions for tax collection can vary, but usually, it's about hitting a specific yearly sales amount in a particular spot, what is called a “tax registration threshold”. Quaderno's turnover report will help you identify where you've surpassed a tax registration threshold, and consequently, where you may need to register for and collect local taxes.

You don't have to collect taxes in every country or region where you sell your products.

For instance, if you are a French company selling digital services to customers in Australia, you only need to collect Australian tax when your annual sales in that country exceed $75,000, the country’s tax registration threshold. However, if you're a US business selling digital services to EU customers, you must always collect the local VAT, because that threshold is €0.

You can find the minimum sales threshold by jurisdiction in our tax guides.

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