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Add non-US countries to collect VAT, GST, or customs duty

This article applies to:AvaTax

Add countries and provinces outside of the US to calculate VAT, GST, or customs duties for sales in those jurisdictions. VAT, GST, and customs duty calculations are influenced by the distance sale threshold in your company settings or place of supply settings in your country details.

Adding Canadian provinces activates Canadian Goods and Services Tax (GST) and Harmonized Sales Tax (HST) calculations for products or services delivered to Canadian customers. If you're a GST/HST registrant, you must select the 5 participating HST provinces: New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island. For more information, see What is GST/HST.

Before you begin

Add non-US countries to collect VAT / GST or customs duties

  1. In AvaTax, go to Settings > Where You Collect Tax.
  2. Click the VAT/GST or Customs Duty tab, and then click Add a Country.
  3. Check the box beside any country where you do business, and then click Add Selected Countries.
    Tip icon Add countries where you expect to do business in the future to avoid incorrect calculations for late transactions.
  4. Some countries may need extra attention. Adjust these settings and then click Next.
    • This company is established in this country
      Your company is "established" in a country if it has a physical location and conducts business there. Individual countries and trade agreements may define establishments in specific ways. Consult trade authorities in countries where you do business to ensure that you meet the necessary criteria.
    • This company is the Importer of Record
      You're considered the importer of record if your business is responsible for making sure that your products are imported according to local customs. This determines who should collect customs duties and import taxes for a transaction. For information about how this setting impacts calculations, see Understand the importer of record setting.
    • This company uses an import VAT deferment scheme
      Check this if VAT payments have been deferred for products shipped to this country. This option is only available after selecting This Company is the Importer of Record.  Learn more about VAT deferment schemes 
      Tip icon Only add a VAT ID in a country where you have one. Don't reuse one country's VAT ID in another.

Changes to where you collect are saved. Repeat these steps for additional countries. 

To edit a country later, click Add a Tax ID or the Details button to update its information.

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