Payment of your VAT/GST on digital services

Understanding the payment process for your VAT/GST returns on digital services is essential to staying compliant with tax regulations across different jurisdictions. Here are answers to the most common questions about VAT/GST payment requirements.

In which currency will I be required to make payment for all returns?

For each VAT/GST return, payment is generally required in the local currency of the country where the tax is owed. The exact currency and amount will depend on the country’s tax regulations, and this information will be clearly displayed in the Taxually app. Within the app, you’ll also find detailed payment instructions specific to each country, ensuring you remit the correct amount in the appropriate currency.

By what date must the outstanding amount be remitted to the relevant tax authorities?

The payment due date for VAT/GST varies depending on the country in which you are filing. Each country has its own deadlines, which are usually set within a specific number of days after the end of the reporting period (monthly, bi-monthly, quarterly, or annually). The Taxually app provides clear instructions regarding the exact deadline for each jurisdiction where you are filing returns, along with the necessary payment information to avoid late payments.

It is important to note that any payment deadlines you see refer to the date when the payment must arrive at the relevant Tax Office’s bank account, not the date in which you make the payment. When we talk about international payments, bank processing times may take longer than we expect, so we always encourage you to make your payments 3-5 business days before the statutory due date to avoid any late payments!

What is the indirect tax remittance payment mechanism?

When it comes to making VAT/GST payments, most countries require you to remit the outstanding amount via bank transfer, also known as EFT (Electronic Funds Transfer) or SWIFT payments. It’s important to note that direct debit is generally not an option for cross-border VAT/GST payments, particularly for non-US countries. Detailed payment instructions, including bank details for the transfer, will be provided in the Taxually app for each jurisdiction.

Navigating the payment process for digital services VAT/GST requires understanding the local currency requirements, payment deadlines, and the correct payment mechanism for each country. With the Taxually app, you can easily access all necessary payment details to ensure you stay compliant and make payments on time.