Is SaaS Taxable? A Country-by-Country VAT/GST Guide

If you sell SaaS internationally, the answer to "is SaaS taxable here?" is almost always yes — the real question is under what rules, at what rate, and starting at what turnover. This guide covers the 68 jurisdictions that currently apply VAT, GST, or equivalent indirect tax to remotely supplied software, with rates and nonresident registration thresholds as of April 2026.

Why SaaS is taxable almost everywhere now

Over the last decade, tax authorities around the world have closed the loophole that once let foreign SaaS vendors sell to local consumers without charging any tax. The OECD's 2015 International VAT/GST Guidelines recommended that digital services be taxed at the place of the customer, and most VAT/GST jurisdictions have since adopted destination-based rules for B2C digital supplies. The EU was first in 2015 (place-of-supply reform); Australia followed in 2017 (the "Netflix tax"); Canada in 2021; and a steady wave of emerging markets since.

This means that if you are a US, UK, or Irish SaaS company selling subscriptions to consumers in, say, Chile, you are almost certainly required to register for Chilean VAT — even without any presence there. For B2B sales, most jurisdictions apply a reverse charge that shifts the VAT obligation to the business customer, but there are notable exceptions.

European Union (27 member states)

All EU SaaS sales are taxable under the electronically supplied services regime. B2C sales are taxed at the customer's country rate, with a single registration via the Non-Union OSS for non-EU sellers. B2B sales use the reverse charge. Rates range from 17% (Luxembourg) to 27% (Hungary). There is no threshold for non-EU sellers — the first euro of B2C turnover creates an obligation.

Country-by-country quick reference

The table below summarises SaaS taxability for the most commonly searched markets. "Nonresident threshold" is the annual turnover at which a foreign SaaS vendor must register. "B2B" indicates whether the reverse charge applies (so the foreign seller does not register for B2B-only sales).

Countries where SaaS is not currently VAT-taxable

A handful of jurisdictions either do not have VAT or exclude SaaS from their VAT base. The most significant is the United States, which has no federal VAT; SaaS taxability is a state-level sales tax question, and currently about 20 US states tax SaaS (including New York, Texas, Washington, Massachusetts, and Pennsylvania), while roughly 25 do not. The rules are complex and rapidly changing — see our separate US SaaS sales tax coverage.

Hong Kong has no VAT/GST at all. Qatar and Kuwait are expected to introduce VAT but have not yet done so. A few smaller jurisdictions treat SaaS as non-taxable services, though most are actively moving to tax.

How to think about coverage

For most SaaS businesses, the practical approach is tiered:

1. Register in any zero-threshold market where you sell B2C: UAE, KSA, Bahrain, Oman, Chile, Colombia, Mexico, Russia, Turkey. Even one consumer sale creates an obligation.
2. Register in the EU and UK: Non-Union OSS for the EU, VOES for the UK. Effectively zero-threshold for B2C.
3. Watch turnover thresholds: Australia A$75k, Canada C$30k, Japan ¥10M, Singapore S$100k, Malaysia MYR 500k. Track monthly and register before crossing.
4. B2B-only? The reverse charge means you usually don't register in most VAT countries — but verify the customer's tax number, because a failed validation flips the transaction to B2C.

Frequently asked questions

Is SaaS taxable everywhere?

No. SaaS is taxable under VAT/GST in roughly 90 jurisdictions. The US has no federal VAT (state sales tax applies in ~20 states), and a small number of jurisdictions such as Hong Kong have no VAT at all.

Do I need to register for VAT in every country I sell SaaS to?

Only where you exceed the nonresident threshold. Many countries (UAE, KSA, Chile, Mexico, Russia) apply a zero threshold. Others (Australia A$75k, Singapore S$100k, UK) use turnover tests. For B2B sales the reverse charge usually removes the registration obligation.

Are B2B SaaS sales taxable?

In most VAT jurisdictions, B2B SaaS supplies are subject to the reverse charge — the foreign seller does not charge VAT, and the business customer self-assesses. A handful of countries (South Africa, Switzerland) register foreign SaaS vendors for all sales regardless of customer type.