Countries where Number X collects and remits VAT, GST and Sales Tax

Selling digital products globally is easier than ever. Managing indirect taxes isn't.

The moment your business starts accepting payments from customers in multiple countries, you're no longer dealing with a single tax system. Instead, you're navigating dozens of different VAT, GST and sales tax regimes, each with its own registration thresholds, reporting requirements, filing deadlines and compliance rules.

For many digital businesses, tax quickly becomes one of the biggest operational challenges of international expansion. The more countries you sell into, the more difficult it becomes to determine where tax applies, which rate should be charged, when registration becomes mandatory and who is responsible for filing returns.

That's exactly why the Merchant of Record model exists.

As your Merchant of Record, Number X becomes the legal seller in every transaction. We don't simply calculate indirect taxes at checkout—we also collect them from customers, file tax returns where required and remit taxes to the appropriate tax authorities, allowing you to sell internationally without building an internal global tax operation.

This page provides an overview of the countries where Number X manages indirect tax compliance for digital products and software sales.

Global tax coverage

Number X currently manages indirect tax obligations in the following jurisdictions.

What taxes does Number X manage?

Different countries use different names for indirect taxes, but the underlying principle is the same: tax is charged on eligible digital sales and remitted to the local tax authority.

Depending on where your customer is located, Number X automatically applies the appropriate tax framework, including:

• Value Added Tax (VAT)
• Goods and Services Tax (GST)
• Sales Tax
• Consumption Tax
• Digital Services VAT and GST regimes

• Other country-specific indirect tax systems applicable to digital products

The applicable tax is determined automatically based on the customer's jurisdiction and the nature of the transaction. Businesses don't need to configure tax rules manually or monitor changing tax legislation across multiple markets.

How Number X manages global tax compliance

International tax compliance involves much more than calculating the correct percentage at checkout.

Every sale may require the correct jurisdiction to be identified, customer tax evidence to be collected, tax to be calculated according to local legislation, compliant invoices or receipts to be generated and reporting obligations to be satisfied.

Number X manages the complete lifecycle of indirect tax compliance as part of our Merchant of Record service.

That includes calculating applicable taxes, collecting them during checkout, maintaining compliance with local reporting requirements, filing tax returns where required and remitting collected taxes to the appropriate authorities.

Instead of combining separate payment providers, tax engines and filing services, businesses operate through a single Merchant of Record that assumes responsibility for the transaction from both a commercial and regulatory perspective.

Why businesses choose a Merchant of Record instead of tax software

Many companies begin their international expansion by integrating tax software.

That approach works well when the only requirement is calculating VAT or sales tax, but tax calculation represents only one step in the broader compliance process.

Someone still needs to determine where tax registrations are required, monitor legislative changes, prepare tax returns, submit filings on time and ensure that every transaction complies with local regulations.

As sales expand into more countries, those operational responsibilities grow alongside revenue.

A Merchant of Record removes that burden by taking ownership of the tax operation itself rather than simply providing the software needed to manage it.

For most software companies, AI platforms, mobile apps, gaming studios and digital businesses, that means international expansion becomes significantly simpler because tax compliance scales automatically as new markets are added.

Do tax rules change?

Yes—and they change frequently.

Governments regularly introduce new VAT and GST regimes for digital services, modify reporting obligations, update tax rates and expand the categories of products subject to indirect taxation.

Keeping pace with those changes internally requires continuous monitoring across dozens of jurisdictions.

Number X tracks changes in applicable indirect tax legislation as part of our Merchant of Record service, ensuring that tax calculations and compliance processes remain aligned with current regulatory requirements without requiring engineering updates or manual intervention from your finance team.

Frequently Asked Questions:

• Does Number X calculate VAT automatically?

Yes. When a transaction is subject to VAT, Number X automatically determines the applicable rate based on the customer's jurisdiction and calculates the correct amount during checkout.

• Does Number X collect GST?

Yes. Where GST applies to digital products or services, Number X collects the appropriate amount from the customer as part of the purchase.

• Does Number X file tax returns?

Yes. As Merchant of Record, Number X manages tax filing obligations associated with the jurisdictions in which it acts as the legal seller.

• Does Number X remit collected taxes?

Yes. Taxes collected during checkout are remitted to the relevant tax authorities in accordance with applicable regulatory requirements.

• Do I need to register for VAT myself?

One of the primary advantages of working with a Merchant of Record is that Number X assumes responsibility for the tax obligations associated with transactions processed through our platform. Instead of registering for indirect taxes in multiple jurisdictions as your business expands, you can rely on Number X to manage those obligations as part of the Merchant of Record service.

• Does Number X support digital products only?

Number X is designed for businesses selling digital goods and services, including SaaS, AI products, software, mobile applications, in-app purchases, online games, in-game currencies, virtual items, creator platforms, APIs and other forms of digital commerce. We can, however, work with merchants selling physical goods on a case-by-case basis.

• Why don't you publish tax rates for every country?

Tax rates and digital tax regulations change regularly, and many jurisdictions have different rules depending on the type of product being sold.

Rather than relying on static tables that quickly become outdated, Number X automatically applies the correct statutory tax at the time of each transaction, ensuring that customers are charged the appropriate amount under the applicable legislation.