Compendium · Glossary

Glossary

Plain-English meanings for the tax terms used on these pages, written for a small seller outside the EU (for example in Laos) who sells digital services abroad. Hover, focus or tap a dotted term on any country page to see the short definition; every term links here.

non-taxable persons

A consumer or other buyer who is not registered for VAT. This is about VAT status, not income tax. #

taxable persons

A business or person registered (or required to register) for VAT, who charges and remits VAT. #

B2C

Business-to-consumer: you sell to a private individual (or another non-taxable buyer), not to a VAT-registered business. #

B2B

Business-to-business: you sell to a VAT-registered business customer. #

reverse-charged

The customer accounts for the VAT instead of you. Common on B2B supplies to a locally registered buyer. #

place of supply

The country whose VAT rules apply to the sale — for most digital B2C services, where the customer is. #

electronically supplied services

Services delivered over the internet with minimal human involvement — for example SaaS, apps, streaming, downloads, or API access. #

non-Union OSS

The EU One-Stop Shop scheme for sellers with no establishment inside the EU. #

IOSS

Import One-Stop Shop: EU scheme for low-value imported goods, separate from the services OSS. #

OSS

EU One-Stop Shop: register and file destination VAT for many EU countries through one member state. #

simplified registration

A lighter registration path for foreign digital sellers, often with fewer local-establishment requirements than a full domestic VAT registration. #

tax representatives

A locally established person or firm that registers and files on your behalf, sometimes jointly liable for the VAT. #

nil-threshold

No free allowance: you must register when you make the first in-scope sale into that country. #

free threshold

A sales (or similar) limit below which a foreign seller may not need to register. Above it, registration and charging local VAT/GST usually apply. #

input VAT

VAT you pay on your own business purchases. Some simplified foreign-seller schemes do not let you reclaim it. #

VAT ID

The identifier the tax authority gives you after registration; you put it on invoices and returns. #

evidence of customer location

Proof of where the buyer is (for example billing address, IP, phone country, bank country). Many laws ask for two non-conflicting pieces. #

GST

Goods and Services Tax — the VAT-style tax name used in places such as Australia, New Zealand, Singapore and India. #

PDV

Croatian name for VAT (porez na dodanu vrijednost). #

TVSH

Albanian / some Balkan name for VAT (tatimi mbi vlerën e shtuar). #

DDV

Slovenian name for VAT (davek na dodano vrednost). #

MWST

German / Swiss / Liechtenstein name for VAT (Mehrwertsteuer). #

IVA

Name for VAT in Spanish-, Italian- and Portuguese-speaking countries (impuesto / imposto sobre el valor añadido). #

TVA

French / Romanian name for VAT (taxe sur la valeur ajoutée). #

SST

Malaysia’s Sales Tax / Service Tax (including the Service Tax on Digital Services). #

BTW

Dutch / Belgian Dutch name for VAT (belasting over de toegevoegde waarde). #

OIDAR

India: Online Information and Database Access or Retrieval services — the digital-services VAT category. #

OVR

Singapore Overseas Vendor Registration — the scheme for foreign digital suppliers. #

VOEC

Norway VAT On E-Commerce — simplified registration for foreign digital suppliers. #

NETP

UK non-established taxable person — a foreign seller registered for UK VAT. #

economic nexus

US state idea: enough sales or transactions into a state that you must register for sales tax, even without a physical presence. #

Art. 59c

EU VAT Directive threshold (EUR 10,000) for certain cross-border B2C supplies by EU-established sellers. #