- Digital nomads must understand VAT obligations, which depend on client location, not their own.
- VAT registration may be required in multiple countries based on revenue and markets served.
- Keeping detailed records of invoices and expenses is essential for compliance and reclaiming VAT.
- VAT is a consumption tax applied at each stage of the supply chain, unlike sales tax.
- Digital nomads may need to charge VAT on services or products depending on client location.
- Ignoring VAT obligations can result in fines, penalties, or business restrictions.
- Selling digital services requires charging VAT based on client location, with schemes like OSS simplifying EU VAT reporting.
- E-commerce businesses must consider VAT when shipping to countries with VAT systems, using schemes like IOSS for low-value items.
Source: taxually.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
