Cross-border Tax Glossary

Value-Added Tax — a consumption tax charged at each stage of the supply chain.

Goods and Services Tax — similar to VAT, used in countries like Australia, Singapore, Canada, India.

Japanese Consumption Tax — Japan's equivalent of VAT, currently at 10%.

A US-only tax collected at the point of sale, varying by state and locality.

A complement to sales tax, owed by the buyer when sales tax was not collected at purchase.

Tax deducted at source from payments like dividends, royalties, or services.

One-Stop Shop — EU system allowing businesses to file VAT in one country for all EU B2C sales.

Import One-Stop Shop — simplifies VAT on goods imported into the EU valued at €150 or less.

Imposto sobre Circulação de Mercadorias — Brazilian state-level tax on goods and services.

Sales and Services Tax — Malaysia's consumption tax system.

The percentage at which VAT is applied, varying by country and product type.

The sales level at which a business must register for VAT, varying by country.

VAT paid on business purchases, which can be deducted from output tax on sales.

VAT collected on sales, which must be remitted to the tax authority after deducting input tax.

A mechanism where the buyer, not the seller, accounts for VAT on cross-border B2B transactions.

A direct reduction in the tax amount owed, unlike a deduction which reduces taxable income.

Taxable supplies charged at 0% VAT, allowing the seller to reclaim input tax.

Supplies not subject to VAT where the seller cannot reclaim input tax on related costs.

VAT/GST exemption for businesses below a revenue threshold, varying by jurisdiction.

The process of registering with a tax authority to collect and remit VAT in a given jurisdiction.

Meeting all VAT obligations including registration, charging, filing returns and record-keeping.

A bilateral agreement between countries to prevent double taxation on cross-border income.

A fixed place of business that triggers corporate tax obligations in a foreign country.

Tax on a company's profits, rates varying by country and affecting cross-border structuring.

VAT charged on goods at the point of importation, usually reclaimable on the VAT return.

Multi-State Tax — US sales tax obligations arising when selling across multiple states.

Extended Producer Responsibility — producers must finance the collection and recycling of their products.

General Product Safety Regulation — EU regulation requiring an EU-based Responsible Person for consumer products.

A mandatory conformity mark for products sold in the European Economic Area.

EU regulation on Registration, Evaluation, Authorization and Restriction of Chemicals.

Waste Electrical and Electronic Equipment — EU directive requiring producers to fund e-waste recycling.

Restriction of Hazardous Substances — EU directive limiting toxic materials in electronics.

Consumer Product Safety Commission — US agency that regulates product safety.

Children's Product Certificate — required for products intended for children under 12 in the US.

Federal Communications Commission — US agency regulating electronic devices that emit radio frequency.

Food and Drug Administration — US agency regulating food, drugs, cosmetics and medical devices.

UK Conformity Assessed — the UK's post-Brexit replacement for CE marking.

Product Safety of Electrical Appliance — mandatory mark for electrical products sold in Japan.

Standards Association of Australia — certification for electrical products in Australia.

Legal responsibility of manufacturers and sellers for defective products causing harm.

A document certifying a product meets specific regulatory requirements for a given market.

Harmonized System Code — an international standard for classifying traded goods.

Harmonized Tariff Schedule — the US system for classifying imports and determining duty rates.

The value threshold below which imports enter duty-free (e.g. $800 in the US).

Cost, Insurance and Freight — seller pays transport and insurance to destination port.

Free On Board — seller's responsibility ends when goods are loaded onto the vessel.

Delivered Duty Paid — seller bears all costs including duties and taxes to deliver to buyer.

Delivered Duty Unpaid — seller delivers goods but buyer pays import duties and taxes.

Free Trade Agreement — bilateral or multilateral agreement reducing tariffs between countries.

Most Favoured Nation — WTO principle requiring equal tariff treatment for all member countries.

US tariffs of 7.5-25% on Chinese goods under the Trade Act of 1974.

Additional duty imposed when goods are sold below normal value in the importing country.

A tax imposed on imported goods, usually based on the product's value or classification.

A licensed professional who handles customs clearance for importers.

A secured warehouse where imported goods are stored without paying duties until released.

The country where a product was manufactured or produced, affecting tariffs and labeling.

A platform (e.g. Amazon) required to collect and remit sales tax on behalf of third-party sellers.

Under EU VAT rules, a marketplace that is treated as the supplier for VAT purposes.

Amazon's program to protect brand owners' intellectual property on the platform.

Fulfillment by Amazon — Amazon stores, picks, packs and ships products for sellers.

Fulfilled by Merchant — seller handles storage and shipping themselves.

Amazon's program that distributes inventory across EU countries for faster delivery.

Business-to-Business — transactions between companies rather than to consumers.

Business-to-Consumer — transactions directly to end consumers.

Amazon Standard Identification Number — a unique 10-character code for each product on Amazon.

Global Trade Item Number — an international product identifier (UPC, EAN, ISBN).

TikTok's integrated e-commerce feature allowing in-app product discovery and purchase.

Live-stream selling on TikTok Shop where sellers demonstrate products in real time.

A hosted e-commerce platform enabling merchants to build their own online store.

Running a Shopify store where orders are fulfilled directly by third-party suppliers.

Selling products across multiple platforms (Amazon, Shopify, TikTok, etc.) simultaneously.

Improving product titles, descriptions, images and keywords to increase search visibility and conversion.

Amazon's featured offer on a product page — winning it is critical for sales volume.

Amazon's enhanced brand content with rich media on product detail pages.

Pay-Per-Click advertising on platforms like Amazon or Google to drive product visibility.

Fulfillment Network Stock Keeping Unit — Amazon's unique product identifier for FBA inventory.

Amazon's web interface for third-party sellers to manage listings, orders and performance.

A unique identifier issued by a tax authority for VAT-registered businesses.

Economic Operators Registration and Identification — required for importing into the EU.

A general term for government-issued identification numbers used for tax purposes.

Federal Employer Identification Number — US tax ID for businesses.

Australian Business Number — an 11-digit identifier for businesses in Australia.

GST Identification Number — India's 15-digit tax registration number.

Unique Taxpayer Reference — UK HMRC's identifier for tax-registered entities.

A periodic report filed with the tax authority showing VAT collected and paid.

The process of registering with a tax authority to collect and remit taxes.

A local agent jointly liable for VAT obligations of a non-resident business.

Employer Identification Number — a US federal tax ID for businesses, issued by the IRS.

The entity legally responsible for ensuring imported goods comply with local laws and paying duties.

Registering for the EU One-Stop Shop to file VAT for cross-border B2C sales in one country.

Registering for the Import One-Stop Shop to simplify VAT on EU imports ≤ €150.

Carbon Border Adjustment Mechanism — EU's carbon tariff on imports of carbon-intensive goods.

A tax on imports based on their carbon footprint, designed to prevent carbon leakage.

A tariff imposed to counteract subsidies provided by a foreign government to its exporters.

A tax obligation triggered by exceeding sales thresholds in a jurisdiction, without physical presence.

A tax obligation triggered by having physical presence (inventory, employees, offices) in a jurisdiction.

A retail fulfillment method where the seller doesn't hold inventory but ships directly from supplier.

The process of assigning a product to the correct HS code to determine duty rates.

Government-imposed restrictions on international trade, including tariffs, quotas and regulations.

A designated area where goods can be imported, stored and processed without customs duties.

International commercial terms defining responsibilities between buyers and sellers in trade.