Tax for selling internationally
Get clear on the tax questionsbefore your stock moves
Keeping stock in a new country, selling through a marketplace or shipping across a border can change your indirect tax obligations. Use this guide to identify the questions to ask. Then check how the rules apply to your business before registering, importing goods or collecting tax.
Start with your supply chain
Tax depends on where goods are, how they move and who sells them
Your online shop rarely tells the whole story. Value-added tax (VAT), goods and services tax (GST) and sales tax can depend on where you keep stock, who imports it, who your customers are, where you sell and whether a marketplace is involved. These factors can affect registration, tax collection and returns. These summaries are for ecommerce brands planning fulfilment; they are not a substitute for advice on a specific transaction.
Rules, thresholds and filing dates can change. Check the linked guidance from tax authorities and get professional advice based on your circumstances.
Compare your options, then explore the details
Choose a market for an overview of registration, simpler reporting options and practical details that may affect a growing brand.
United Kingdom
UK VAT depends on your stock, sales and imports
If your ecommerce business is based overseas and sells taxable goods directly to UK customers while those goods are already in the UK, you may need to register for and account for UK VAT. Different rules apply to goods shipped into the UK, depending on the sale, shipment and sales channel. Before deciding how to treat a sale, check where the goods are and whether a marketplace is involved.
Key differences
| Goods already in the UK | An overseas seller that makes direct taxable sales of goods located in the UK will generally need to register for and account for UK VAT. Check whether a marketplace is involved, whether an exemption applies and how the supply chain works. Do not rely on a turnover threshold. |
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| Goods shipped from overseas | The rules depend on factors such as the shipment's value, whether the customer is a consumer or a business registered for VAT, and whether an online marketplace facilitates the sale. Outside the special rules for tax collected at checkout, normal import VAT and customs rules still apply. |
Operational details
EORI and the importer of record
You will commonly need a GB EORI for customs activity in Great Britain. Movements involving Northern Ireland may require a different identifier. Agree who will be the importer, declarant and owner of the goods. A customs agent can submit a declaration, but appointing one does not automatically transfer the importer's underlying responsibilities.
Postponed VAT accounting
PVA can let a business registered for UK VAT declare import VAT on its VAT Return and, if normal recovery rules allow, reclaim it on that return. Statements and customs data must match the return. PVA changes when VAT is accounted for. It does not remove customs duty or make VAT that cannot normally be reclaimed recoverable.
Returns and evidence
After registering, you must submit VAT Returns and keep records on the timetable set by HMRC. Keep evidence of sales, marketplace activity, customs and import VAT. Make corrections using the process HMRC specifies.
What to check first
Review sales through your own store separately from marketplace sales. UK marketplace rules may make the marketplace responsible for collecting VAT on certain transactions, but they may not cover every obligation.
Before dealing with customs, confirm who is the importer of record and get the right Economic Operators Registration and Identification (EORI) number. An EORI identifies a customs operator; it is not a VAT registration and cannot replace one.
An importer registered for UK VAT may be able to use postponed VAT accounting, or PVA, and report import VAT on its VAT Return instead of paying it at import.
Goods moving through Northern Ireland may be subject to different rules, including treatment under EU rules in some cases. Check these movements separately.
European Union
EU VAT has shared rules and national registrations
EU countries share a VAT framework, but each country manages its own registrations, returns and import arrangements. Holding stock or moving your own goods can create local obligations. The One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes can simplify reporting for some business-to-consumer sales, but neither is a universal EU VAT registration.
Key differences
| OSS for goods already in the EU | Union OSS lets an eligible seller report covered sales to consumers across EU borders through one EU country. It generally does not replace the national VAT registration needed where the seller holds stock, makes local sales or carries out other transactions not covered by OSS. |
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| IOSS for goods imported for the customer | IOSS covers eligible sales to consumers of imported goods within the scheme's value limit. VAT is collected at checkout and reported monthly through one registration. Check product exclusions, shipment rules, marketplace rules and whether an intermediary is required. |
Operational details
EORI, importer of record and representation
The importer of record is responsible for the import declaration and related customs obligations. Rules on customs representation and who can act as importer depend on the business structure and EU country. In some situations, a business outside the EU may need an indirect customs representative, a VAT fiscal representative or an IOSS intermediary. These roles are different and cannot replace one another.
Import VAT and Article 23
Import VAT payment deferral depends on the country. In the Netherlands, an Article 23 permit lets a business account for import VAT on its VAT return. A foreign business cannot apply directly and must use a tax representative.
This is a Dutch arrangement, not a permit that applies throughout the EU. France has a separate mandatory, automatic process for accounting for import VAT for people identified for French VAT. Do not apply the Dutch Article 23 process in France.
Business to business sales still need a review
The customer's valid VAT number, the rules that determine where a sale is taxed (place of supply), proof of transport and the type of transaction all matter. Reverse charge or zero rating may apply to an eligible sale, but selling to a business does not by itself remove local registration or reporting duties.
Keep national and scheme returns in sync
OSS and IOSS returns are in addition to any national VAT returns you need to file. Match the dispatch country, destination, customer status, marketplace data, VAT rate, refunds and customs evidence across your systems.
What to check first
Check every place you store stock and every movement of your own goods. Registering in one EU country does not automatically cover stock held in another.
Union OSS can combine reporting for eligible cross-border sales to EU consumers and certain services. Sales from local stock and other transactions may still need national VAT returns.
IOSS is an optional import scheme for eligible sales to consumers of low-value goods shipped from outside the EU. It does not apply to goods already stored in the EU.
You need an EU Economic Operators Registration and Identification (EORI) number for EU customs clearance. An EORI number, a VAT number and the importer-of-record role are separate things.
United States
US sales tax needs state by state monitoring
There is no single federal sales tax registration. Sellers need to review nexus—a connection with a state that can trigger tax obligations—taxable products, marketplace rules and filing duties for each state and, where relevant, each local jurisdiction. Stock in a warehouse or fulfilment network can create physical nexus. Sales can create economic nexus under each state's own test.
Key differences
| Nexus through physical presence | Stock, premises, people or other activity in a state can create a sufficient connection with that state. Review stock held by a fulfilment provider or marketplace at each location. The result and effective date depend on state law. |
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| Nexus through sales | A seller based elsewhere may have to register after meeting a state's sales threshold, even without a physical presence there. There is no single revenue or transaction threshold that applies everywhere. States differ in their tests, what they count, the periods they review and when collection must start. |
Operational details
Look beyond Shopify when monitoring
Yonda Sales Tax Automation offers a free Shopify app to monitor nexus. The app is separate from Yonda's paid, separately arranged managed compliance service, which covers registrations, filings and tax payments.
The free app does not register your business or file returns. Check its current features and include all relevant sales and stock data. Shopify data alone will not show your full position across marketplaces, wholesale and in-person sales. Agree the service scope before work begins.
Registration and filing
Once you have confirmed nexus and which products are taxable, register in each relevant state before collecting tax. Each jurisdiction sets how often you file and when payments are due. You may still need to file for a period with no sales. Set up and reconcile product tax rules, exemptions, sourcing (which location's tax rules apply) and local rates.
A federal tax ID is not a sales tax permit
An Employer Identification Number (EIN) is a federal ID issued by the IRS. It is not a state sales tax registration. Whether a business based outside the US needs an EIN for a state application depends on the state. International applicants must follow the IRS application process and should not assume they can apply for an EIN online.
Check earlier periods too
Registering now does not automatically resolve earlier periods. If your business may have exceeded a threshold or held stock before registering, work out the possible exposure and get advice before contacting a state or using a voluntary disclosure process.
What to check first
Track stock locations, employees, contractors and other activity in each state, as well as sales. Physical presence and economic nexus can each create an obligation.
Track sales from every channel together. States differ on which sales count toward their thresholds, the period they measure and when tax collection must begin.
Marketplaces often collect tax on sales they facilitate. Depending on the state, those sales may still count toward a threshold or affect registration and filing duties.
Wait until the right registration is active before collecting tax. Keep filing until the state confirms that the account can be closed or made inactive.
Australia
Choose the Australian GST option that fits your sale
Australia offers standard and simplified goods and services tax (GST) registration for different situations involving businesses based overseas. The right option depends on what you sell, where the goods are at the time of sale, whether the customer is a consumer, whether a marketplace is involved and whether your business needs GST credits. Selling to Australian customers alone does not determine the right option.
Key differences
| Simplified GST | This option is for eligible businesses based overseas that do not need an ABN or GST credits. It uses an Australian Taxation Office (ATO) reference number and a simpler quarterly return. You cannot use it to issue tax invoices or claim GST credits. It is not available for goods stored in Australia before sale. |
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| Standard GST | This option is for businesses based overseas that are entitled to an ABN, make connected sales (sales linked to Australia under its GST rules) and need the full system. It uses Business Activity Statements and supports tax invoices. GST credits may be available for eligible business purchases and taxable imports when all requirements are met. |
Operational details
An ABN and GST registration are not the same
The standard option requires an Australian Business Number and identity checks. The simplified option uses an ATO reference number and does not provide an ABN. Not every Australian GST registration uses an ABN.
GST credits need evidence
Standard registration does not make every GST amount claimable. The purchase or import must qualify, you must keep the required evidence and rules about when to report a credit apply. The simplified option does not allow GST credits.
Returns follow the registration
Businesses using simplified registration lodge a simpler return each quarter. Standard registrants lodge a BAS monthly or quarterly, according to ATO rules and their assigned cycle. Deferred GST and other arrangements may affect the reporting cycle, so check before importing goods.
Imported goods and local stock follow different rules
The rules for low value imported goods cover eligible goods sold to consumers and brought into Australia after the sale. Goods already held in Australian stock follow a different local supply chain. Keep customs values, checkout tax and import records connected, but do not treat these two types of sale as the same.
What to check first
If you import goods and store them in Australia before sale, simplified GST registration is not available. Assess whether standard registration is appropriate.
Simplified registration is for eligible sales by businesses based overseas, such as low-value imported goods sold to Australian consumers. It does not provide an Australian Business Number (ABN) or allow GST credits.
Standard registration uses an ABN and supports tax invoices. It may allow GST credits when the legal conditions are met and you have the required evidence.
An electronic distribution platform may be responsible for GST on a sale it facilitates. Review direct sales and sales through other channels separately.
Canada
Canada has federal and provincial sales taxes
Canada's federal goods and services tax (GST) and harmonized sales tax (HST) rules need to be considered alongside separate provincial tax systems. A business based outside Canada must assess its regular GST/HST position based on factors such as whether it carries on business in Canada and makes taxable supplies (sales subject to GST/HST). Separate digital economy rules may require simplified registration for some cross-border sales. Qualifying goods use the normal regime.
Key differences
| Normal GST/HST | The normal regime applies to businesses required or permitted to register under the usual rules, including businesses based outside Canada that carry on business there. Registrants charge and report GST/HST on taxable supplies (sales subject to GST/HST) and may claim input tax credits (credits for GST/HST paid on eligible business purchases) when requirements are met. |
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| Simplified regime for digital sales | This regime covers certain cross-border sales of digital products or services and platform-facilitated sales by businesses based outside Canada. It has its own registration and return process and does not allow input tax credits. A business cannot hold normal and simplified GST/HST registrations at the same time. |
Operational details
Goods and digital sales follow different rules
Do not apply the simplified digital threshold or process to stock just because it is sold online. The CRA says qualifying goods can only use normal GST/HST registration. Digital sales need a separate review of customer status, platforms and place of supply.
Federal registration does not cover provincial tax
Registering for GST/HST does not also register you for Quebec sales tax (QST), British Columbia or Saskatchewan provincial sales tax (PST), or Manitoba retail sales tax (RST). Review each provincial system, sales channel and product. Marketplace rules may change who collects tax on a sale, but do not necessarily settle your duties on direct sales.
Imports and input tax credits
You cannot automatically recover import tax just because goods enter Canada. The business claiming it must qualify under the normal GST/HST rules and keep evidence of the import and business activity. Clarify who will be the importer of record before shipping.
Returns continue after registration
Businesses using normal and simplified registration file different returns. Once registered, you generally need to file for every assigned reporting period and charge, collect and pay tax under your regime. This can continue even if your activity later falls below the original registration threshold, until the account is properly changed or closed.
What to check first
GST is federal. HST combines the federal tax with a participating province's tax. The applicable rate depends on place-of-supply rules, which determine where a sale is taxed.
Quebec sales tax (QST), British Columbia (BC) provincial sales tax (PST), Saskatchewan PST and Manitoba retail sales tax (RST) are separate systems. Each has its own rules and registration requirements.
The simplified GST/HST regime covers certain digital economy supplies and does not allow input tax credits. Qualifying goods must use normal registration.
If you import, store or sell goods in Canada, review whether normal registration is required. The answer depends on your circumstances, including whether you carry on business in Canada, small-supplier rules that can affect registration, and evidence about the importer.
Fulfilment with FULFIL.X, tax support with Yonda
Contact FULFIL.X to plan your stock locations and fulfilment. Yonda is our specialist tax partner and can support registrations and filings. We will agree the scope and arrangements for your business before any work begins.
Sending this form does not automatically share your details with Yonda. These four checks bring your operating plans and tax review together.
1. Track where goods go
Note where stock starts and where it will be stored, who owns it at each stage and who will be responsible for importing it (the importer of record).
2. Review each sales channel
Review sales through your own store, marketplaces, wholesale and digital channels separately. A platform may collect tax on some sales, but that does not necessarily settle your obligations on others.
3. Confirm registrations
Before launch, check local registration, customs identification and representation requirements. One registration may not cover every country or type of tax.
4. Keep checking
Compare sales across all channels, watch for changes in US nexus (a connection with a state that can trigger tax obligations) or turnover, keep import records and file by each authority's deadlines.
Tell us about your plans
Tell us where you keep stock, how you sell and which markets you are considering. We will help identify the practical questions and connect you with tax support if needed.
Important information
This page provides general information about indirect tax and customs. It is not tax, legal or accounting advice, does not determine whether you need to register and should not be relied on for any specific transaction. Rules depend on the facts and may change. Confirm your position with the relevant authority or a qualified adviser.
Content reviewed: 2026-09-22