Ecommerce has enabled millions of small and midsize businesses to tap into the global market. This presents enormous opportunities. It can also create a world of tax requirements.
Tax is tax wherever you go — governments impose it, businesses and individuals pay it — but each country’s tax regime is unique. American businesses selling into Europe need to navigate value-added tax (VAT), while foreign businesses selling into the United States must unravel the Gordian knot that is American sales and use tax. VAT and sales tax share some qualities, but they’re not the same.
Source Avalara
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