International tax compliance for eCommerce brands
Ensure international tax compliance by displaying a full landed cost—product price, shipping, duties, and VAT/GST—before payment. Determine nexus and registration obligations per destination, apply correct HS classification, and collect required taxes at checkout when rules allow. Issue compliant invoices, store transaction data, and reconcile filings and remittances on schedule. Localize currency and payment methods, present delivery timelines, and clearly disclose who pays any residual import charges to maintain price transparency and reduce disputes.
FAQ
### How do I ensure price transparency while meeting VAT/GST requirements?
Calculate and show the full landed cost at checkout, including VAT/GST and duties based on HS codes and destination rules. Disclose who pays any remaining import charges and issue compliant invoices.
### What is included in a full landed cost for cross-border orders?
It includes the product price, shipping, insurance if applicable, import duties, VAT/GST, and any mandatory fees that must be paid before delivery.
### Do I need to register for VAT or GST in every country I sell to?
Registration depends on destination thresholds, nexus, product type, and fulfillment model. Assess local rules and use available schemes where applicable, maintaining compliant invoicing and records.
### When should I collect taxes at checkout versus at delivery?
Collect at checkout when regulations permit, as it supports compliance and prevents unexpected COD charges. If rules require collection on delivery, disclose expected amounts and payer responsibilities clearly.
