Taxes – particularly Value-Added Tax, also known as VAT – are often one of the most neglected topics in online business. Many new online entrepreneurs are unaware that they must pay VAT taxes and of the special rules around selling digital products. This is why I recorded this episode of The Sigrun Show, dedicated to demystifying VAT in online business.
In this episode, I discuss the VAT in online business and the VAT rules for online entrepreneurs. I go over the revenue limitations and requirements for paying VAT as a small online business provider, and when you should be paying VAT on services you receive from abroad.
Understanding the impact of VAT is an essential step for any entrepreneur. While an experienced accountant, especially a tax specialist, is a critical investment for any online business, understanding how to manage and balance tax commitments will help your run your business considerably smoother.
In This Episode of The Sigrun Show:
- Identifying the Value-Added Tax
- Examples of VAT exemptions
- Registering your company for VAT
- When to apply VAT on the products and services you sell
- VAT rules regarding buying and selling digital products
- The importance of charging VAT upfront as a product or service provider
