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Taxand Global Academy hosted another edition of the Virtual Training Tuesdays focused on the complexities of sales tax in the US and VAT in the EU, bringing together over 50 participants from 20 countries. The session, led by experts in the field, provided participants with key insights into taxability rules, compliance requirements, and emerging trends affecting businesses operating across these jurisdictions.
Key Takeaways
Sales tax in the US operates at the state level, with each state imposing its own rules and thresholds, particularly concerning nexus, which determines a company’s tax obligation in a specific jurisdiction. In contrast, VAT in the EU is uniformly applied but varies based on the place of supply, making compliance essential for cross-border transactions. Additionally, the group explored key compliance challenges businesses face when dealing with these differing systems and the importance of understanding exemptions, thresholds, and reporting obligations.
A key discussion point was the evolving role of marketplace facilitators, who are now required in both the US and EU to collect and remit taxes on behalf of sellers. This has significant implications for businesses selling through digital platforms. The discussion highlighted recent regulatory updates and the increasing scrutiny on marketplace compliance, underscoring the necessity for companies to monitor changes and ensure proper tax collection and remittance.
Participants worked through real-world scenarios involving the taxability of goods, services, and digital products across both regions. The discussions highlighted the nuances in compliance obligations and the frequent regulatory updates that businesses must navigate. Attendees explored practical applications of tax rules, such as determining the correct tax rates, assessing the impact of cross-border transactions, and understanding seller versus buyer obligations.
Upcoming Taxand Virtual Training Tuesdays Sessions:
Session recording available on Taxand’s Hub:
Documents > 2. Taxand Global Academy > Indirect Tax > E-commerce
Any questions? Please contact julia.nazzareno@taxand.com
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