5 Key Considerations for Expanding Your Business Internationally

In a recent webinar co-hosted by NoBlue2 and Avalara, industry experts shared insights on these five critical factors

Expanding your business into international markets is an exciting and strategic move that can unlock significant growth opportunities. However, it also comes with its fair share of challenges, particularly in taxation, compliance, and logistics. To navigate these complexities, businesses must clearly understand the regulatory landscape and leverage the right technology to streamline processes.

In a recent webinar co-hosted by NoBlue2 and Avalara, industry experts shared insights on the five critical factors businesses must consider before expanding internationally.

Below, we explore these key areas and best practices for ensuring a smooth and successful transition into global markets.

1. Understanding International Tax Legislation

One of the most daunting aspects of international expansion is understanding and adhering to various tax regulations across multiple jurisdictions. Different countries impose unique tax structures, and failing to comply can result in fines, legal repercussions, and operational disruptions.

 

Key considerations include:

  • Identifying the correct Value Added Tax (VAT) or Goods and Services Tax (GST) rates for each jurisdiction.
  • Navigating reverse charge mechanisms, VAT thresholds, and exemptions.
  • Managing US sales tax complexities, which vary at the state, county, and city levels. In some cases, different floors of the same building can be subject to distinct tax rules.
  • Staying updated on frequent tax law changes, which can happen annually or quarterly in certain regions.

 

Businesses should invest in automated tax compliance solutions to avoid costly mistakes. Avalara, for example, provides real-time tax rate updates, ensuring that companies remain compliant as they scale internationally.

2. Streamlining Tax Reporting and Compliance

Accurate tax calculation is just the first step. The next critical aspect of international expansion is ensuring seamless tax reporting and compliance. Many businesses rely on outdated, manual processes prone to human error and inefficiencies.

 

Here’s how to improve tax reporting:

  • Implement automated tax filing solutions to reduce administrative overhead and minimise errors.
  • Use data validation checks to identify discrepancies before filing returns.
  • Take advantage of pre-built tax connectors, such as Avalara’s integration with NetSuite, for smooth compliance processes.
  • Ensure tax reports are formatted correctly for submission to local tax authorities.

 

International tax regulations are becoming increasingly stringent, and companies that fail to report accurately may face audits and penalties. Leveraging automated solutions can significantly reduce risk while freeing up internal resources for more strategic tasks.

3. Managing Customs Duties and Import Regulations

For businesses that sell physical goods internationally, customs duties and import regulations add another layer of complexity. Failure to comply with these regulations can lead to shipment delays, unexpected fees, and dissatisfied customers.

 

Key factors to consider:

  • HS Codes and Tariff Classifications: Every product must be assigned the correct Harmonized System (HS) code to determine the appropriate duty rate. Incorrect classifications can lead to overpaying duties or penalties for underpayment.
  • Customs Documentation: Ensure all shipping documents, including commercial invoices and certificates of origin, are accurate and complete.
  • Duty and Tax Calculation: Customs duties vary by country, and some markets impose additional import taxes based on product category and value.
  • Cross-Border Shipping Compliance: Certain products may require additional certifications or comply with specific trade agreements, so verifying all requirements before shipping is essential.

 

Technology-driven solutions like Avalara can automate customs duty calculations and HS code assignments, ensuring accuracy and compliance at scale. Businesses can avoid unnecessary costs and enhance the customer experience by leveraging automation.

4. Leveraging E-Invoicing for Efficiency and Compliance

The shift toward mandatory electronic invoicing (e-invoicing) is one of the most significant changes in global tax compliance. Many governments require businesses to generate and submit invoices digitally, ensuring greater transparency and tax compliance.

 

To stay ahead of these regulations, businesses should:

  • Monitor global e-invoicing mandates, which are rapidly rolling out across the EU, Latin America, and Asia.
  • Implement technology that formats invoices correctly based on each country’s requirements. Some jurisdictions require digital signatures, QR codes, or government approvals before issuing invoices.
  • Integrate e-invoicing directly into ERP systems like NetSuite for seamless processing and automated compliance.
  • Ensure that accounts receivable and payable processes comply with international e-invoicing standards.

 

Avalara provides an embedded solution with NetSuite, making it easier for businesses to generate and transmit compliant e-invoices across multiple regions. With a scalable solution, companies can expand into new markets with minimal disruption.

5. Building a Scalable and Compliant Tech Stack

As businesses grow internationally, their technology infrastructure must evolve to support increased operational complexity. A fragmented tech stack can lead to inefficiencies, compliance risks, and data discrepancies.

 

To optimise global expansion, businesses should:

  • Consolidate tax compliance, e-invoicing, and customs management into an integrated platform.
  • Utilize pre-built integrations for seamless data flow between financial systems and tax engines.
  • Ensure scalability by choosing solutions that adapt to new regulations and jurisdictions.
  • Automate compliance tasks to reduce manual intervention and free up internal resources.

 

Avalara’s deep integration with NetSuite ensures businesses can calculate, report, and file taxes confidently, reducing risk and improving efficiency.

In summary

Expanding internationally offers immense growth potential but requires a strategic approach to tax compliance, customs management, and financial operations. Businesses can easily navigate these challenges by leveraging automation and expert partnerships.

 

Key takeaways:

  • Understand and comply with international tax laws to avoid fines and disruptions.
  • Automate tax reporting to ensure accuracy and reduce administrative burdens.
  • Manage customs duties effectively to prevent shipment delays and unexpected costs.
  • Embrace e-invoicing to comply with emerging global mandates.
  • Invest in a scalable tech stack that simplifies tax compliance and cross-border operations.

 

With NoBlue2 and Avalara, businesses can confidently expand into new markets while ensuring compliance at every stage.

Get in touch

ARE YOU LOOKING TO EXPAND YOUR BUSINESS GLOBALLY?

Contact us today to learn how we can support your journey

Whether you're an existing NetSuite user, or new to cloud ERP, let's talk about your business ambitions. International growth is waiting for you!