FREE CHECKLIST
Selling Software Abroad Checklist
About forty five minutes with your customer list open. The treatment is decided per sale, not per company: business or consumer, UK, EU or beyond, each with one right answer, the evidence to keep, and the trap markets flagged before their thresholds pass.
- Place of supply per segment: business customers where they belong, consumers where they live
- The B2B file: VIES validation, reverse charge wording, no UK VAT and the proof kept
- EU consumers through OSS from the first sale, and the US state tax watch
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Who this checklist is for
The first foreign invoice goes out this month
Decide the treatment before the billing system does it for you, and write the one-page segment table into the finance manual so every later invoice follows it.
Consumer sales into the EU have started
There is no threshold: the first subscriber triggers their country’s VAT, and the non-Union OSS is one registration and one quarterly return instead of twenty-seven.
US revenue is growing quietly
Economic nexus accrues state by state while nobody watches; the quarterly sales-by-state review, or a merchant of record, is how it stays a plan rather than a surprise.
FACTS
An EU consumer pays their own country’s VAT from the very first sale, with no registration threshold for a UK business. The OSS return is quarterly, in euros, and wants two non-contradictory pieces of location evidence per sale, kept for ten years. The billing platform usually holds them; the obligation is still yours.
no threshold
for consumer digital sales into the EU: the first sale triggers VAT
$100,000 or 200 transactions
the common US state economic nexus test after Wayfair
FACTS
There is no American VAT: each state runs its own sales tax, most assert nexus at around $100,000 of sales or 200 transactions, and a good number tax SaaS, New York, Texas and Pennsylvania among them. Track sales by state before the thresholds pass, or price a merchant of record to carry the whole problem for a percentage.