Selling Low-Value Goods? Tax Authorities Are Looking for You (2)

Companies like Amazon and eBay used to be able to ship a $20 scarf or a $15 wallet across most borders without collecting taxes.

But those days are fast ending as sales of low-value goods around the world skyrocket, and more countries start requiring companies based elsewhere to collect taxes on all goods they sell, no matter how low the price. Governments stand to gain billions of dollars in revenue from ending the exemption.

The changes will require offshore sellers and online marketplaces to update their internal systems to ensure they collect and report the appropriate value-added tax from buyers ...