How to handle international taxation for subscription apps?
economysubscription-appsinternationalization
I have a Flutter app with Razorpay payments charging $10/month. I need to add sales tax/VAT based on user location but I'm confused about the implementation. For my home country (India) I know I need to add 18% GST. But what about users in the US, EU, UK, Canada, etc? Do I need to register for tax in every country? At what revenue threshold do you typically start worrying about this?
Synthesized Answer
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Handling international taxation for subscription apps can be complex, but there are strategies to simplify it. Initially, you can focus on tax compliance in your home country, like you've done with 18% GST in India. For international users, you can either charge tax based on their location or use a simplified approach. Many SaaS products start by ignoring international taxes or charging tax only in their home country, but this may not be compliant with local regulations.
Key Takeaways
Start with tax compliance in your home country
Consider using a tax compliance service like Paddle or Merchant of Record for international taxes
Research revenue thresholds that trigger tax registration requirements in target countries
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