Engage a tax advisor to ensure state and Federal tax compliance.

Typical U.S. corporate tax calendar [in-process]

State Registrations

US Tax Returns

Non-U.S. Operations: Permanent Establishment

A permanent establishment (PE) is a fixed place of business that generally gives rise to income or value-added tax liability in a particular jurisdiction.

For a Delaware C-Corp, if key management teams and/or other key operations are located outside of the U.S., it may trigger tax reporting requirements in local countries (specific threshold / evaluation criteria depends on the local jurisdiction).

Discuss with your tax advisor on international tax law compliance and risk assessment.

Value Added Tax

VAT in UK and EU: Consumption Tax that is applied to all digital/physical goods and services. SaaS companies are to Charge VAT and are categorized as a TBE service according to the EU VAT and UK VAT categories.

To be in compliance with VAT the company needs to do the following items:

• Register your Business in EU (When selling to customers or business in EU)
• Verify your Customers (Obtain their VAT #, Billing Address, Customer Bank Location, Country of Credit Card, IP Address location of the Buyers Device if applicable etc.)
• Know when to Charge VAT – SaaS based companies always charge VAT when engaging in a B2C SaaS sale
• Retain Invoices
• Submit VAT Returns

Knowing when to Register: When using an invoicing platform, they do have monitoring mechanism to track sales if location of customers are correctly entered and maintained. Once the business is approaching a threshold a notification/warning is sent to the users. Note, even if you are NOT an EU based business, with a US or other location you may still be responsible for collecting VAT and remitting VAT returns.

Below are some high-level guidelines specifically for UK and EU VAT.

• IF you are an EU Business (Company is based in EU Country) selling only to customers/business in your home country register with the local tax authorities for a VAT registration.
• IF you are a non-EU Business selling to customers/business in one ore more EU countries register for a VAT MOSS (Mini One-Stop Shop) in the EU Country of your choice. They all work together for VAT applications.