A modern software business has customers all over the world—and often, a high volume of individual sales. Each of those transactions can be subject to different tax laws and regulations, depending where the customer is located.
While staying on top of complex and always-changing US sales tax laws is hard enough, SaaS companies who make sales across borders face the added challenge of complying with diverse rules around the globe.
In many cases that means accurately charging and accounting for value-added tax (VAT), a type of tax that doesn’t exist in the US. Handled properly, this tax is passed on to customers at the time of sale. But the complexities of managing VAT regulations and processes all over the world often prohibit companies from prioritizing compliance—and they end up paying that VAT out of pocket instead.
Getting ahead of VAT compliance can help your business avoid large and unnecessary costs down the line. This guide is for SaaS companies based in the US who want to understand their tax obligations on sales made to customers located internationally.
Download the guide to learn everything you need to know as a SaaS finance leader or startup founder about getting and staying VAT compliant.
