VAT / GST for software companies
The software industry is evolving rapidly and the digital distribution of applications and software is increasing.
With many ways of monetizing, the transaction chain is making hard to apply the correct VAT treatment which might lead to inaccurate VAT calculations and allocations.
Global VAT Compliance simplifies VAT management, ensuring accurate calculations across complex transaction chains allowing your software business to grow globally.
Software is taking over
Advancements in Software Distribution
With improvements in network bandwidth, digital distribution is rapidly replacing physical software, enabling instant access to applications worldwide. Digital platforms like Apple’s App Store and Google Play further support global software distribution via third-party applications.
New Software Distribution Models
Previously, software required purchase, installation, and ongoing maintenance. Today, Software as a Service (SaaS) has shifted this model, with developers fully managing the software lifecycle. In 2023, global non-gaming app revenue reached $64 billion, driven by subscriptions, in-app purchases, and advertising.
VAT Challenges for Software Companies
As digital distribution expands, varied monetization methods create complex VAT challenges. Ensuring accurate VAT handling is essential to avoid miscalculations and costly non-compliance issues.
Looking for VAT expertise in software?
Have a look at Mytaxflow, GVC uses this state of the art software to streamline your VAT compliance
Streamline your VAT compliance with GVC
Global VAT Compliance (GVC) brings the expertise needed to ensure full VAT compliance as your software business expands worldwide.
We provide global coverage across Europe, the Asia Pacific, the Middle East, and the Americas, with Fiscal Representation in over 25 countries like Switzerland, Serbia, and Albania where it is required.
Staying updated on the latest regulatory changes, GVC ensures your company meets all local tax obligations, allowing you to focus on growth opportunities across global markets.