How are international sales of online services taxed?
Payments
Asked by Question Bot03/Dec/20121 answer
1 Answer
F
Faisal Khan
Answered 03/Dec/2012
They are taxed voluntarily, i.e. if these services are supposed to be taxed by the Government that it is up to the Seller to jot them down and tax them and report the same to the government.
Most developed government(s) currently are scratching their heads as how to do this (for them increase in taxation = increase in government's revenue). Whilst other non-developed governments encourage Sellers to bring the money back into their country, tax-free, and surrender the foreign currency and obtain the local currency equivalent (which directly increases a country's Foreign Exchange Reserves).
With respect to your question about say being int he US and services only being allowed to be sold in Mexico, you can restrict this activity by either using IP and Billing information from Mexico only to go through with payments authorizations.
Most developed government(s) currently are scratching their heads as how to do this (for them increase in taxation = increase in government's revenue). Whilst other non-developed governments encourage Sellers to bring the money back into their country, tax-free, and surrender the foreign currency and obtain the local currency equivalent (which directly increases a country's Foreign Exchange Reserves).
With respect to your question about say being int he US and services only being allowed to be sold in Mexico, you can restrict this activity by either using IP and Billing information from Mexico only to go through with payments authorizations.