# Are There no Taxes on International Revenue? | Dodo Eye-Q

> Understand the tax implications of international revenue. Learn how a merchant of record like Dodo Payments handles sales tax, GST, and VAT compliance for you.

- **URL**: https://dodopayments.com/videos/are-there-no-taxes-on-international-revenue
- **Video**: https://www.youtube.com/shorts/LyudbcX6lAU

---

Many founders mistakenly believe that international revenue is tax-free, but ignoring tax obligations can lead to fines totaling thousands of dollars. Sales tax, GST, and VAT are consumption-based taxes, meaning you must charge them based on your customer's specific jurisdiction. If you are based in India, you might tell the GST Council that no GST applies because the income was generated outside the country. However, you are still legally required to collect and remit sales tax according to the laws of the country where your customer is located.

Managing tax IDs, filings, and coordinating with multiple local consultants across different regions is both challenging and expensive. The administrative burden alone can distract you from growing your SaaS or digital products business. Yet, the cost of non-compliance is far higher, often resulting in severe legal and financial penalties that can jeopardize your company's future.

To simplify this complex process, you can use a merchant of record like Dodo Payments. We act as the legal entity responsible for your international payments, automatically calculating and remitting the correct amount of tax for every transaction. By leveraging our global payments infrastructure, you abstract away the complexities of international tax management. Dodo Payments ensures your business remains compliant with local regulations worldwide, allowing you to scale your global revenue without the headache of manual tax administration.