--- title: "International tax compliance · Fungies" description: "VAT, GST and US sales tax on digital sales calculated, collected, remitted and filed under our registrations — including the audits, in every market." image: "https://fungies.io/og-image.jpg" canonical: "https://fungies.io/international-taxes-saas/" --- Features · International tax # International tax, filed under someone else's name Selling software across borders creates obligations in places you have never been, usually from the very first transaction. The way to make that manageable is not better tax software. It is not being the seller. [Start free](https://app.fungies.io/register) [Book a demo](https://calendly.com/duke-vuh/fungies-io-demo-clone) No upfront costs. No credit card required. Already selling with Fungies [![Leadsin.io](/logos/clients/leadsin.png)](/customer-story/hosted-checkout-solution-for-leadsin-io-a-saas-business "Leadsin.io — read the story")[![RenderAI](/logos/clients/renderai.png) ](/customer-story/helping-renderai-reduce-their-ai-saas-payment-integration-from-days-to-just-a-couple-of-minutes "RenderAI — read the story")[![SuperScale](/logos/clients/superscale.png) ](/customer-story/nimblebits-revenue-boost-with-a-web-store-solution "SuperScale — read the story")[![FreeVocals](/logos/clients/freevocals.png) ](/customer-story/freevocals-com-and-fungies-io-a-seamless-solution-for-digital-e-commerce "FreeVocals — read the story")![STATSCORE](/logos/clients/statscore.png)![SimFabric](/logos/clients/simfabric.png)![BotRix](/logos/clients/botrix.png)![Enhance AI](/logos/clients/enhance-ai.png)![The Humanize AI](/logos/clients/humanize-ai.png)![Kenerate AI](/logos/clients/kenerate.png) ![The Fungies dashboard showing revenue net of tax, with the tax collected on each transaction broken out.](/_astro/dashboard.CJpPF-pD_21IdDC.webp?dpl=dpl_8EZJmbvb3ugYq7WK1KgC21BX19Zp) What you see is net revenue. The tax line has already been collected and is ours to file. ## What we take on EU VAT Registered across all 27 member states. The rate that applies to the buyer's country is added at checkout, and the returns are filed under our registrations. US sales tax Economic nexus rules differ per state and trigger on thresholds that a growing product crosses without noticing. Because we are the seller, crossing one is our registration to hold. GST and the rest The same model applies wherever a digital-services regime exists. You sell into the market; we are the party registered in it. Calculated at the moment of sale Tax is worked out for the buyer's location during checkout and can be shown inclusive, so the total on the button is the total charged. Recalculated on every renewal A subscription signed two years ago is still charging under today's rules. Each renewal is priced against current rates rather than the ones in force when it started. The audits as well Registration and filing are the visible part. Answering a tax authority afterwards is the part that costs time, and it comes to us. ## How the liability moves 1. 01 ### The customer buys from us As Merchant of Record we are the legal seller on the transaction. Their contract is with us, and the payment shows our descriptor on their statement. 2. 02 ### Tax is added for their jurisdiction The correct rate for where they are is applied at checkout — not estimated at the end of a quarter, and not left as something to reconcile later. 3. 03 ### We collect, remit and file The tax collected goes to the authority that is owed it, on their schedule, under our registration numbers. None of it passes through your accounts. 4. 04 ### You receive net revenue What lands in your payout account is yours. There is no accompanying liability sitting quietly against it waiting to be discovered. ## Why this is worth more than it looks 01 ### There is usually no threshold to hide behind Most digital-services regimes tax a foreign seller from the first sale, with no small-supplier allowance. The common assumption that international obligations start once you are big is the expensive one. 02 ### The cost is the discovery, not the tax Back-registering in a market you have been selling into for two years means back-filings, interest and penalties, plus the accountant hours to work out what was owed. Not being the seller means that scenario cannot arise. 03 ### Rates move under live subscriptions Recurring revenue is exposed to every rate change and rule change for as long as it runs. Handling that once at signup is not enough, which is why it is recalculated on each charge. 04 ### It is included, not metered Tax calculation, remittance, filing and audits are inside the 5% + 50¢ alongside processing, fraud screening and chargebacks. There is no separate compliance subscription and no per-filing charge. Negotiable once you are selling at volume. ## What sellers say once they have switched [★★★★★ 4.8/5 from 10 reviews on G2 →](https://www.g2.com/products/fungies-io/reviews) [Vadim Finayev Head of Growth, Leadsin.io “We work with quite a few merchants of record, but none comes close to the support and speed of implementation of Fungies. If you want a payment partner that actually gives you the feeling they want to work with you — rather than leaving you on read for three days or randomly restricting your account — you are in the right place.” Read the story →](/customer-story/hosted-checkout-solution-for-leadsin-io-a-saas-business) [David Elliott Creative Director, Freevocals.com “I researched the options and Fungies was the best fit for functionality and customisation within a store builder you can connect to your own domain. Taking a small percentage of sales, instead of charging a subscription for every environment and plugin, is refreshing.” Read the story →](/customer-story/freevocals-com-and-fungies-io-a-seamless-solution-for-digital-e-commerce) [Elnura Abdimanap Kyzy Founder, TextToVideo.bot “The platform is user-friendly, integrates easily with APIs and webhooks, and simplifies managing digital products and subscriptions. We were up and running quickly and support has been responsive throughout. Fungies is clearly tailored to the needs of SaaS businesses.” Read the story →](/customer-story/how-fungies-enabled-texttovideo-bot-to-integrate-payments-in-minutes) [Francisco Magnone Rienzi Founder, Renderai.app “Fungies has been a great partner — fast setup, competitive pricing, and real humans providing quick answers. They are constantly rolling out new features, and I am excited to see what is next.” Read the story →](/customer-story/helping-renderai-reduce-their-ai-saas-payment-integration-from-days-to-just-a-couple-of-minutes) ## Tax questions ### What does Merchant of Record actually mean for tax? ### Do I still need to register for VAT abroad? ### Which markets are covered? ### Is tax shown before checkout or added at the end? ### What happens if a rate changes? Tax ## Who is liable, where, and what moves when we are the seller. - [US Sales Tax for SaaS →](/us-sales-tax-saas) - [Tax Compliance Software →](/tax-compliance-software) ## Stop carrying tax risk for markets you have never visited Start selling and let the registrations, filings and audits sit where they belong. No upfront cost and no card needed. [Start free](https://app.fungies.io/register) [Book a demo](https://calendly.com/duke-vuh/fungies-io-demo-clone) No upfront costs. No credit card required. ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://fungies.io/#organization","name":"Fungies","legalName":"Fungies Inc.","url":"https://fungies.io/","description":"Merchant of Record for SaaS, games, and digital products. Fungies handles global payments, VAT and sales tax, and checkout. 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Fungies handles global payments, VAT and sales tax, and checkout. Free to start, commission only.","inLanguage":"en","publisher":{"@id":"https://fungies.io/#organization"}},{"@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://fungies.io/"},{"@type":"ListItem","position":2,"name":"International tax compliance","item":"https://fungies.io/international-taxes-saas"}]},{"@type":"FAQPage","mainEntity":[{"@type":"Question","name":"What does Merchant of Record actually mean for tax?","acceptedAnswer":{"@type":"Answer","text":"It means we are the legal seller on every transaction rather than you. The customer's contract is with us, so the VAT, GST and sales-tax liability is ours, along with the registrations, the returns and the audits."}},{"@type":"Question","name":"Do I still need to register for VAT abroad?","acceptedAnswer":{"@type":"Answer","text":"No. That is the point of the model. You still handle your own domestic income or corporation tax on the revenue we pay you, which is a much simpler question for your accountant than a dozen foreign registrations."}},{"@type":"Question","name":"Which markets are covered?","acceptedAnswer":{"@type":"Answer","text":"We are registered across the 27 EU member states and file VAT, GST and US sales tax as the seller of record. Your customers can be anywhere in the world; the constrained side is where we can pay you, which is over 110 countries."}},{"@type":"Question","name":"Is tax shown before checkout or added at the end?","acceptedAnswer":{"@type":"Answer","text":"Either. Tax-inclusive pricing is supported, so the price on the page can already be the amount charged. There is also an API endpoint to ask what an offer costs a buyer in a given country with tax included, before they reach checkout."}},{"@type":"Question","name":"What happens if a rate changes?","acceptedAnswer":{"@type":"Answer","text":"We apply the current rate at the time of each charge, including on subscription renewals. A change in a market you sell into does not require anything from you and does not leave old subscriptions charging the wrong amount."}}]}]} ```