Tax basics for online sellers (GST & VAT)

Selling online means charging and recording tax correctly on every order. The rules differ by country, so treat this as orientation and confirm your setup with your accountant.

Know your registration

In India, GST registration and your GSTIN determine how you invoice. In the UK and GCC, VAT registration thresholds and rules apply. Start by confirming what applies to you.

What a tax invoice shows

A compliant invoice typically includes your legal name and tax ID, a sequential number, date, customer details, item tax codes, rates and tax amounts.

• Seller name, address and tax ID
• Sequential invoice number and date
• Tax code, rate and amount per line

Local vs cross-border sales

Where the customer is affects which tax applies, such as CGST and SGST within an Indian state or IGST across states. Exports may be zero-rated.

Credit notes and refunds

When an order is cancelled or refunded, issue a credit note rather than editing the original invoice. Your records and returns stay accurate.

Keep records ready for filing

A tax register and ready exports save hours each month and reduce errors when your accountant prepares returns.

Every business is different. Use these ideas as a starting point and confirm tax, legal and policy matters with qualified advisers.