- Global Tax Transformation: The rapid growth of eCommerce is prompting governments worldwide to revise sales tax policies, with many countries implementing new regulations to capture revenue from online sales, while others remain tax-free for foreign sellers.
- Diverse Tax Approaches: Various jurisdictions have adopted different strategies regarding online sales tax: the U.S. mandates sales tax based on economic nexus, the EU requires VAT registration for non-EU sellers, and countries like Hong Kong and Singapore maintain tax-free statuses to attract businesses.
- Future Trends and Compliance: As revenue shortfalls increase and digital transactions dominate, more countries are expected to adopt online sales tax regulations. Businesses must remain vigilant and adapt their tax strategies to meet evolving compliance requirements and avoid penalties.
Source Complyt
