Side Hustle School Ep. 3150 - Q&A: “Do I need to worry about international taxes on digital products?”
Aug 16, 2025
Selling digital products can get tricky when international taxes come into play. This discussion breaks down the complexities of VAT and provides crucial compliance tips for creators. Learn how to navigate tax obligations without feeling overwhelmed. Discover the importance of using sales platforms to simplify tax collection. These insights empower small business owners to sell globally while staying compliant!
AI Snips
Chapters
Transcript
Episode notes
Cross-Border Sales Change Tax Rules
- Selling digital products across borders triggers extra tax considerations like VAT even without shipping.
- International sales complicate taxes more than domestic sales for small creators.
Listener Story: U.S. Seller Gets Global Orders
- Steven describes selling design templates and guides that were initially U.S.-only and are now getting international orders.
- He asks whether VAT warnings mean a tax headache for his small business.
Delegate VAT To Your Platform
- Use major sales platforms (Gumroad, Etsy, Shopify, PayPal) that can collect and remit VAT automatically.
- Enable the platform's tax settings so you avoid filing extra paperwork yourself.