Non-resident VAT, GST, ICMS tax collection country guide
Zonos has put together a summary of some key points for each country currently using a non-resident tax scheme. Review this information in the table below, or in the more detailed breakdowns that follow, to stay up-to-date, and to see if you need to get registered for any of these countries.
| Country | Threshold/yr | Collect tax on | Remit | Registration | More info | Tax type |
|---|---|---|---|---|---|---|
| Australia 🇦🇺 | 75,000 AUD | Orders below A$1,000 | Quarterly | website | Docs | GST |
| European Union 🇪🇺 | N/A—It applies to all low-value orders (< = 150 EUR). | Orders less than or equal to 150 EUR | Monthly | Any EU country revenue | Docs | VAT |
| Indonesia 🇮🇩 | 600 mil rupiahs | All items | Quarterly | n/a | Docs | VAT |
| New Zealand 🇳🇿 | 60,000 NZD | Items below 1,000 NZD | Quarterly | website | Docs | GST |
| Norway 🇳🇴 | 50,000 NOK | Items below 3,000 NOK | Quarterly | website | Docs | VAT |
| Switzerland 🇨🇭 | 100,000 CHF | Items below CHF$65 | Quarterly | website | Docs | VAT |
| United Kingdom 🇬🇧 | N/A—It applies to all low-value orders (< = 135 GBP). | Orders less than or equal to 135 GBP | Quarterly | website | Docs | VAT |
Australia's GST taxation law
- Threshold amount: A$75,000 within a 12-month period
- Collect GST tax on: All orders below A$1,000
- How often to remit taxes: Quarterly
- How to register: Register on Australia’s website
- Other requirements: Include a statement on the order’s commercial invoice stating that tax was collected on the order
European Union’s VAT taxation law
- Threshold amount: Not applicable—It applies to all low-value orders (less than or equal to €150) if the retailer chooses the IOSS option.
- Collect VAT on: All orders below or equal to €150
- How often to remit taxes: Monthly
- How to register: You can register in any EU country; go to their revenue website to begin registration. Keep in mind that you need a fiscal representative in the EU.
- Other requirements: Appoint a fiscal representative in the EU country of your choice to handle registration and remittance, maintain customer invoices for 10 years, and follow any requirements provided by the country’s government.
Indonesia's VAT taxation law
- Threshold amount: 600 million rupiahs or website traffic of 12,000 visitors within a 12-month period
- Collect VAT on: All intangible goods and taxable services
- How often to remit taxes: Quarterly for three tax periods
- How to register: The Indonesian government will reach out to you and provide you with a tax identity number
- What to do after you register: Activate your account, update your data online through their system, and follow the requirements provided by the Indonesian government.
New Zealand's GST taxation law
- Threshold amount: NZ$60,000 within a 12-month period
- Collect GST on: Each item that is below NZ$1,000
- How often to remit taxes: Quarterly
- How to register: Register on New Zealand’s website
- Other requirements: Provide a full tax invoice with each order and include a statement on the order’s commercial invoice stating that tax was collected on the order.
Norway VOEC (VAT on ecommerce) scheme
- Threshold amount: NOK 50,000 within a 12-month period
- Collect VAT on: Only items that fall within the VOEC scheme (below NOK 3,000 and not certain types of items).
- How often to remit taxes: Quarterly
- How to register: Register on Norway’s website
- Other requirements: Include your VOEC number on the shipping label
Switzerland's low-value consignment relief (LVCR)
- Threshold amount: CHF$100,000 of low-values sales within a 12-month period
- Collect VAT on: Anything with a value below CHF$65
- How often to remit taxes: Quarterly
- How to register: Register on Switzerland’s website
- Other requirements: Appoint a fiscal representative in Switzerland, maintain customer invoices for 10 years, and follow any requirements provided by the Swiss government
The United Kingdom’s low-value VAT taxation law
- Threshold amount: Not applicable—It applies to all low-value orders (less than or equal to £135).
- Collect VAT on: Anything with a value below or equal to £135
- How often to remit taxes: Quarterly
- How to register: Register on the HMRC website
- Other requirements: Ensure you are sending low-value orders into the UK with your UK VAT number on the invoice so that customs knows you will be remitting to HMRC.
Non-resident ecommerce country taxation; a new trend in international trade
In 2018, Australia came out with a law that requires non-resident businesses to collect and remit tax on their low-value sales into the country. Businesses must register with Australia in order to file and remit the collected tax each quarter. Australia decided to put this into place as a way to level the playing field for Australian businesses that must charge GST on all of their orders. About a year later, Switzerland implemented a similar law and with New Zealand, Norway, and Indonesia following suit, the trend began.
Since then, the UK and EU have implemented their own post-Brexit VAT laws in 2021.
With the growing number of countries putting taxation schemes into place, it’s important to know when and how to register, the requirements to stay compliant, and the differences between each country. If you are registered to collect and remit tax for multiple countries, it can be challenging to make sure you are collecting tax on the correct orders or items, meeting the country’s requirements on commercial invoices and labels, and accounting for all the orders you collected tax on so you can report and remit the right amount at the end of the quarter.
That’s where Zonos can help! Zonos will: