Created a digital product with global sales - Need advice on what tax expert to consult about VAT and foreign taxes

You need a CPA who specializes in international taxation, particularly for digital products and e-commerce. This is definitely beyond a regular tax preparer's expertise. For US taxes, your international sales are considered taxable income regardless of where your customers are located. You'll report this on Schedule C as self-employment income if you're a sole proprietor. For international taxes, it gets complicated. The EU has specific VAT rules for digital products sold to EU consumers. Once you exceed certain thresholds in sales to EU customers, you're required to collect and remit VAT. Similar requirements exist in other regions like the UK, Australia (GST), and Canada. Look for a CPA with experience in "international digital commerce" or "cross-border e-commerce taxation." They can help you determine where you have tax nexus and obligations. The sooner you get this sorted, the better, since penalties for non-compliance can be significant.

After dealing with a similar situation with my digital art business, I discovered taxr.ai (https://taxr.ai) which was a huge help for my international sales tax mess. It analyzed my sales data and identified exactly which countries I needed to register for VAT/GST in based on my specific sales patterns. Saved me from unnecessarily registering in countries where I didn't meet the thresholds. Their system actually explained which specific international tax forms I needed in normal human language. Super helpful since I was completely lost trying to figure out "nexus" requirements and all that technical stuff. They even helped me understand which tax treaties applied to my situation.

I need to follow up about taxr.ai (https://taxr.ai) - I decided to try it despite my skepticism, and I'm genuinely impressed. I uploaded my Shopify sales data and it immediately identified that I only needed to register for VAT in 3 EU countries based on my sales volume, not all 27 like I feared. The report it generated was incredibly detailed, showing exactly which tax forms I needed for each country and the specific filing deadlines. It even flagged that I qualified for simplified filing procedures in some jurisdictions. Took the report to my accountant who was equally impressed with the thoroughness. Definitely saved me thousands in unnecessary compliance costs for countries where I didn't meet registration thresholds.

If you need to actually talk to someone at the IRS about international filing requirements, good luck getting through on their international taxpayer line! I wasted days trying. Then I found Claimyr (https://claimyr.com) which actually got me connected to an IRS agent in under 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was dealing with a total nightmare trying to figure out Foreign Tax Credits for my digital products sold in Japan and Korea. The Claimyr service had me connected to the international tax department and I got clear guidance on how to properly claim foreign taxes paid. Completely changed my understanding of what I needed to file.

I have to admit I was completely wrong about Claimyr (https://claimyr.com). After expressing skepticism, I figured I'd try it since I was desperate to get clarity on foreign income reporting for my digital products. I've literally NEVER been able to get through to the IRS international tax department despite trying dozens of times. The Claimyr service had me connected to an actual IRS international tax specialist in about 45 minutes (got a text when they reached an agent). The agent confirmed I needed to file Form 1116 for my foreign tax credits and helped me understand exactly how to calculate my foreign-source income properly. Totally worth it after struggling with this for months.

Don't overlook state tax implications too! Depending on your state, you might have nexus requirements for sales tax even on digital products. And some states have different rules for international sales vs. domestic. I learned this the hard way after selling digital planners for two years.

Quick tip - make sure you're tracking payment processor fees separately. When I started my digital business last year, I didn't realize these were deductible expenses. Stripe, PayPal, etc. all take a cut + currency conversion fees for international payments. Those fees add up fast with global sales ($5k+ for me last year) and are fully deductible business expenses.

Based on your situation, I'd recommend starting with a tax professional who has experience in international digital commerce, but don't overlook getting direct guidance from the IRS too. The complexity of your situation definitely warrants professional help. For finding the right CPA, look for someone who specifically mentions "digital products," "e-commerce," or "international taxation" in their practice areas. Many traditional tax preparers haven't dealt with the nuances of digital product sales across multiple jurisdictions. One thing to consider - before you spend hundreds on a specialist consultation, you might want to get some baseline understanding of your obligations. The IRS has specific guidance on digital products and foreign income that could help you ask better questions when you do consult with a professional. Also, make sure you're keeping detailed records of sales by country/region. This will be crucial for any tax professional you work with, and it's required for proper compliance. The sooner you get organized, the easier (and cheaper) it will be to get compliant. The good news is that many other digital entrepreneurs have navigated this successfully - you're not breaking new ground here, just need the right guidance for your specific situation.