A Tax Professional’s Playbook to Expanding Internationally

Expanding into international markets opens up new customers and revenue streams. But it also introduces a layer of tax complexity that U.S. companies rarely face at home. This eBook walks tax professionals through six practical steps to prepare for global compliance: from learning how VAT works to keeping pace with constantly changing tax rules worldwide.

Start with VAT

Value added tax is one of the first and biggest differences you'll encounter. Unlike U.S. sales tax, VAT is assessed at every stage of the production chain. EU member states each interpret VAT legislation in their own way, which means 27 different rule sets to navigate. Registration thresholds, invoicing formats, e-invoicing mandates, and filing calendars vary by country. Understanding these requirements early puts your team in a much stronger position.

Know where and how you plan to sell

Which markets you enter determines your reporting and remittance requirements. It also shapes how you think about product categories, selling channels, and fulfillment models. E-commerce volumes, marketplace facilitator laws, omnichannel fulfillment options like buy-online-pick-up-in-store, and emerging channels like IoT purchases all carry their own tax implications. Getting clarity on your growth goals before you expand helps you anticipate what compliance work is coming.

Fragmented tax systems create real risk

Tax data and calculations often live in multiple systems: ERP platforms, POS systems, e-commerce platforms, marketplace tools, and procurement systems. When those systems aren't in sync, errors happen. A rate update applied in one system but missed in another can mean incorrect charges, unhappy customers, and costly penalties. International expansion makes this problem worse. A cloud-based tax engine that integrates across your full tech stack creates one consistent source of truth.

Your tax team structure matters

As you scale, the way you organize your tax function needs to keep pace. Whether you have a small team or a larger multi-department setup, aligning your tax coverage to every sales channel is essential. Connecting your tax team closely with broader business strategy (growth plans, product changes, and new markets) helps them stay ahead of compliance rather than react to it.

Automate to keep up with rate changes

Tax rules change continuously across more than 20,000 taxing jurisdictions worldwide. Relying on manual research and IT tickets to update your systems creates dangerous delays. A tax engine removes that burden by automatically maintaining current tax content across regions, tax types, and business scenarios, so your team can focus on strategy instead of chasing rate changes.

Vertex's end-to-end solutions are built to support U.S. companies moving into global markets. We help you automate VAT and cross-border tax compliance, improve accuracy on sales and purchase transactions, and reduce the risk of errors as tax laws evolve.