Taxes, Duties & International Fees

AQNOVA MARKETPLACE

Global Legal Footer Framework

Comprehensive Compliance & Platform Governance Reference

(MASTER)

Global Tax Collection, Customs Duties, Import Fees & Buyer Responsibility Framework

Effective Date: April 7, 2026 | Version 1.0 | Arivon Holding Corporation

This Taxes, Duties & International Fees Policy ("Tax Policy") sets out the complete framework governing: the taxes and duties that AqNova collects and remits on behalf of transactions conducted on the Platform; the circumstances in which tax is the Buyer's or Vendor's direct responsibility; the customs and import duty framework for cross-border transactions; and the consumer transparency obligations AqNova fulfills in relation to tax disclosure at checkout.

This Policy supplements Section 4.0 (Orders, Payments & Consumer Rights), the Pricing & Payments Policy (Section 4.4), and the Vendor Agreement (Section 2.2). Tax compliance is a shared responsibility between AqNova, Vendors, and Buyers, as defined in this Policy.

4.5.1 AqNova's Role — Marketplace Facilitator vs. Direct Tax Collector

AqNova's tax collection role varies by jurisdiction. AqNova acts in three distinct capacities across different tax regimes:

Regardless of which capacity applies, AqNova is committed to tax transparency: no tax should surprise a Buyer at the payment confirmation stage. Where AqNova collects tax at checkout, it is displayed as a line item in the order total. Where taxes are the Buyer's direct responsibility (e.g., import duties on cross-border orders), an estimate is displayed at checkout and the Buyer is clearly informed of their obligation.

A. Legal Framework — South Dakota v. Wayfair

The US Supreme Court's 2018 decision in South Dakota v. Wayfair, Inc. (585 U.S. 162) established that states may require out-of-state sellers to collect and remit sales tax based on economic nexus — a threshold of economic activity in a state, without requiring physical presence. Following Wayfair, 45 of the 50 US states (and the District of Columbia) that impose sales tax have enacted marketplace facilitator laws requiring marketplace operators like AqNova to collect and remit sales tax on behalf of third-party Vendors selling through the marketplace.

B. AqNova's Marketplace Facilitator Status

AqNova is registered as a marketplace facilitator in all applicable US state and local tax jurisdictions where it meets economic nexus thresholds or where marketplace facilitator laws apply. As a marketplace facilitator:

AqNova collects the applicable sales tax rate at checkout, based on the Buyer's delivery address.

AqNova remits all collected sales tax directly to the applicable state and local tax authorities.

Individual Vendors selling through AqNova are relieved of their sales tax collection and remittance obligations for Platform-facilitated transactions in marketplace facilitator states — AqNova assumes this obligation.

Vendors are still responsible for sales tax on sales made outside the Platform (direct sales, other channels) and must comply with applicable state nexus rules independently for those channels.

C. US Sales Tax Coverage

D. US Sales Tax Exemptions

Certain transactions may be exempt from US state sales tax, depending on state law. Common exemptions relevant to AqNova transactions include:

Resale exemption: Buyers purchasing goods for resale (not personal consumption) may qualify for a sales tax exemption if they provide a valid resale certificate to AqNova before purchase. Resale exemption certificates are submitted through the Vendor Dashboard (for Vendor-to-Vendor transactions) or by contacting tax@aqnova.co.

Exempt organizations: nonprofit organizations, government entities, and educational institutions that qualify for sales tax exemption under applicable state law may submit their exemption certificates to AqNova for application to their account.

Product exemptions: food for human consumption is exempt from sales tax in many states (e.g., New York, Texas, Illinois). Prescription medicines and medically necessary products are exempt in most states. Agricultural inputs are exempt in many states. AqNova applies product-level tax exemptions based on the product's HS code and applicable state rules.

E. 1099-K Reporting

AqNova is required to file IRS Form 1099-K for Vendors who meet applicable thresholds. AqNova issues 1099-K forms to qualifying Vendors by January 31 of each year for the prior tax year. Vendors are responsible for reporting their income on their federal and state tax returns consistent with IRS Form 1099-K requirements.

A. EU VAT E-Commerce Package — Overview

The EU VAT E-Commerce Package (Council Directive 2017/2455/EU, effective July 1, 2021) fundamentally reformed how VAT is collected on cross-border e-commerce sales to EU consumers. The reform introduced two key mechanisms relevant to AqNova:

Import One-Stop Shop (IOSS): For goods imported from non-EU countries with a value up to EUR 150, AqNova (as the deemed supplier) collects VAT from EU consumers at checkout and remits it to the applicable EU Member State through the IOSS. This simplifies customs clearance — goods accompanied by a valid IOSS number clear customs quickly, and no VAT is collected at the border.

One-Stop Shop (OSS): For goods that are already in the EU but sold cross-border between EU Member States (e.g., goods shipped from a warehouse in Germany to a consumer in France), AqNova uses the OSS to report and remit VAT to all applicable EU Member States through a single registration.

B. Deemed Supplier Rule (EU VAT Directive Art. 14a)

Under EU VAT Directive Article 14a (as amended by Directive 2017/2455/EU), AqNova is treated as the "deemed supplier" for certain transactions — meaning AqNova is legally treated as though it has bought the goods from the Vendor and sold them to the Buyer, for VAT purposes only. This applies to:

All sales of goods imported from outside the EU with a value not exceeding EUR 150 (IOSS transactions).

All sales of goods within the EU where the Vendor is a non-EU established business (regardless of value, for goods already in the EU).

As deemed supplier, AqNova collects and remits VAT — the Vendor's supply to AqNova is deemed a zero-VAT transaction, and AqNova's supply to the Buyer carries the applicable VAT at the destination Member State rate.

C. EU VAT Rates by Member State

AqNova applies the correct VAT rate for each EU Member State automatically at checkout, based on the Buyer's delivery address. The Buyer's invoiced VAT is itemized on the order receipt for transparency.

4.5.4 United Kingdom — VAT (Post-Brexit Online Marketplace Rules)

Following the UK's departure from the European Union (effective January 1, 2021), the UK implemented its own online marketplace VAT rules that are broadly similar to the EU rules but operate independently:

UK VAT Act 1994, Section 47A: AqNova is treated as the deemed supplier for: (a) goods sold by non-UK established Vendors (regardless of value, where goods are located in the UK at the time of sale); and (b) goods imported into the UK with a consignment value not exceeding GBP 135 (equivalent to the EU's EUR 150 threshold).

Standard VAT rate: 20%. Reduced rate: 5% (domestic energy, women's sanitary products, children's car seats). Zero rate: 0% (most food, children's clothing, books, newspapers, prescription medicines).

AqNova's HMRC registration: AqNova is VAT registered in the United Kingdom and submits quarterly VAT returns to HMRC. AqNova's UK VAT Registration Number is disclosed on AqNova's VAT invoices.

For orders from non-UK Vendors with UK stock (warehouse in UK): AqNova applies UK VAT at the standard or applicable reduced rate for all UK deliveries.

For orders imported from outside the UK (above GBP 135): import VAT is the Buyer's responsibility, collected at the UK border by the carrier acting as customs broker. AqNova displays an estimated import VAT amount at checkout for cross-border orders exceeding GBP 135.

4.5.5 Canada — GST / HST / QST

Canada's consumption tax framework comprises multiple overlapping taxes at the federal and provincial levels:

AqNova is registered under the Excise Tax Act for GST/HST collection and remittance. For Quebec, AqNova is also registered for QST. AqNova calculates and collects the applicable tax for each Canadian province/territory based on the delivery address at checkout.

Non-resident suppliers (offshore digital services): digital services supplied to Canadian consumers by non-resident Vendors are subject to GST/HST under the digital economy rules (Budget 2021 amendments, effective July 1, 2021). AqNova collects GST/HST as deemed supplier for applicable digital service transactions.

British Columbia PST: BC PST applies to digital services sold to BC residents as of April 1, 2021. AqNova collects BC PST on qualifying digital sales to BC consumers.

CBSA import duties: goods imported into Canada are subject to the Canada Customs Tariff. De minimis: CAD $20 for taxes; CAD $40 for duties (among the lowest in the developed world). AqNova displays an estimated duty amount for cross-border orders where Canadian customs charges are expected.

4.5.6 Brazil — Tax Framework for E-Commerce

Brazil has one of the world's most complex tax systems, particularly for e-commerce. The principal taxes applicable to goods sold on AqNova to Brazilian consumers are:

A. Brazilian Taxes Applicable to E-Commerce

B. Remessa Conforme Program

Brazil's Remessa Conforme program (effective August 2023, CAMEX Resolution) provides a simplified import tax regime for e-commerce purchases from qualifying registered platforms:

Under Remessa Conforme: goods imported via registered platforms are subject to a flat 20% import tax plus applicable ICMS at state rate. The USD $50 de minimis import tax exemption for postal imports is suspended for Remessa Conforme platform transactions.

Platforms not registered under Remessa Conforme: goods imported via postal services are subject to the 60% flat rate on declared value for amounts above USD $50; amounts below USD $50 from platforms not in Remessa Conforme may be subject to the flat 20% tax plus ICMS.

AqNova's registration status under Remessa Conforme: AqNova is in the process of assessing and registering under the Remessa Conforme program. Current registration status is disclosed at [aqnova.co/tax/brazil].

4.5.7 South Africa — VAT

South Africa's Value-Added Tax Act 89 of 1991 (VAT Act) imposes a 15% VAT rate on most taxable supplies in South Africa. The following framework applies to AqNova transactions involving South African Buyers:

VAT registration threshold: R1 million (approximately USD $54,000) in taxable supplies in a 12-month period triggers mandatory VAT registration. South African Vendors selling on AqNova above this threshold must be VAT-registered and must include the applicable VAT in their listed prices.

Electronic services VAT (Section 7C, VAT Act): non-resident suppliers of electronic services to South African consumers must register for and collect South African VAT. SARS has issued specific guidance on the VAT treatment of online marketplace transactions.

Import VAT: goods imported into South Africa are subject to 15% VAT at import in addition to applicable customs duties. Import VAT is levied by SARS customs on the landed cost (customs value + customs duty). Import VAT is the Buyer's responsibility for cross-border orders under DDU/DAP terms.

Zero-rated supplies: certain goods are zero-rated for VAT in South Africa, including most basic food items (brown bread, mealie meal, samp, dried mealies, eggs, dried beans, lentils, tinned sardines, milk powder, pilchards, rice, vegetables, fruits, vegetable oil, peanut butter).

AqNova's South Africa VAT collection: where AqNova collects South African VAT as marketplace facilitator for qualifying transactions, VAT is displayed as a line item at checkout.

A. India GST Framework

India's Goods and Services Tax (GST) replaced multiple earlier indirect taxes effective July 1, 2017. GST in India is a dual-structure tax comprising:

CGST (Central GST): central government levy on intra-state supplies.

SGST/UTGST (State/Union Territory GST): state/UT levy on intra-state supplies.

IGST (Integrated GST): central government levy on inter-state supplies (including imports).

GST rates applicable to most goods sold on AqNova range from 0% (basic food; books; vegetables; certain medical items) to 5%, 12%, 18%, and 28% (luxury goods, demerit goods). The applicable GST rate for each product is determined by the HSN (Harmonized System of Nomenclature) code assigned to the product by the Vendor.

B. TCS (Tax Collected at Source) — Section 52 CGST Act

Under Section 52 of the CGST Act 2017, AqNova (as an Electronic Commerce Operator, or ECO) is required to collect Tax Collected at Source (TCS) on net taxable supplies made by Vendors through the Platform and remit it to the Government. The TCS rate is 1% of the net value of taxable supplies (0.5% CGST + 0.5% SGST/UTGST for intra-state; 1% IGST for inter-state).

TCS is not an additional cost to the Buyer — it is collected from the Vendor's payout by AqNova and credited to the Vendor's GST account through the GSTN (Goods and Services Tax Network) portal. Vendors can claim TCS credit against their GST liability.

Vendor GST registration: all Vendors making taxable supplies through AqNova to Indian customers must be GST-registered and must provide their GSTIN (GST Identification Number) to AqNova for Platform verification.

Non-GST-registered Vendors: certain Vendors (handicraft artisans; casual taxable persons) may supply through AqNova without GST registration under specified conditions. AqNova's onboarding process identifies eligible exemptions.

4.5.9 Australia — GST (Electronic Distribution Platform)

Australia's GST (Goods and Services Tax) Act 1999 imposes a 10% GST on most goods and services consumed in Australia. The Treasury Laws Amendment (GST Low Value Goods) Act 2017 and subsequent amendments require Electronic Distribution Platforms (EDPs) like AqNova to collect and remit GST on:

Low-value imported goods (customs value of AUD 1,000 or less) sold to Australian consumers — collected at checkout by AqNova as EDP.

Digital products and services supplied to Australian consumers by non-resident Vendors — collected at checkout by AqNova as EDP.

GST is charged at 10% and is included in the price displayed to Australian Buyers at checkout. The GST amount is itemized on the order receipt. AqNova is registered with the Australian Tax Office (ATO) for GST remittance and submits quarterly Business Activity Statements (BAS).

For goods with a customs value above AUD 1,000 imported into Australia: ATO GST is levied at the Australian border by the Australian Border Force (ABF), not collected at checkout by AqNova. AqNova displays an estimated import GST amount for high-value cross-border orders.

4.5.10 Japan — Consumption Tax

Japan's Consumption Tax (消費税, Shōhi-zei) was increased to 10% on October 1, 2019 for most goods, with a reduced rate of 8% maintained for food and beverages (excluding alcohol, eating out, and delivery meals) and newspapers (under a qualified invoice system). AqNova applies the appropriate consumption tax rate for Japanese Buyers based on the product category:

Standard rate (10%): applies to all goods other than those qualifying for the reduced rate.

Reduced rate (8%): food items and beverages sold as consumer goods (not alcohol, dining in restaurants, or similar consumption). AqNova maps product categories to the applicable rate.

Qualified Invoice System (October 2023): Japan's Invoice System (適格請求書保存方式) requires registered business operators to issue qualified invoices. AqNova ensures that business-to-business transactions within Japan comply with the qualified invoice issuance requirements.

Non-resident digital services: digital services supplied by non-resident Vendors to Japanese consumers are subject to Japanese consumption tax under the Reverse Charge Mechanism or registration requirement. AqNova verifies Vendor compliance for digital service transactions involving Japanese consumers.

A. Singapore — GST (OVR Regime)

Singapore's GST is currently 9% (increased from 8% on January 1, 2024). Singapore's Overseas Vendor Registration (OVR) regime requires overseas businesses supplying digital services or low-value goods (customs value not exceeding SGD 400) to Singapore consumers to register for, collect, and remit Singapore GST. AqNova collects and remits Singapore GST as an overseas vendor / electronic marketplace operator under the OVR regime administered by IRAS (Inland Revenue Authority of Singapore). GST is displayed as a line item at checkout for Singaporean Buyers.

B. South Korea — VAT

South Korea's Value Added Tax (부가가치세) is 10% on most goods and services. Foreign electronic service providers (including marketplace operators) that supply digital services to South Korean consumers must register for VAT with the Korean National Tax Service (NTS) under the Foreign Digital Service Provider VAT registration system. AqNova is registered with the NTS for VAT collection on applicable digital services supplied to Korean consumers. Physical goods sold through AqNova by non-Korean Vendors and imported into Korea are subject to Korean customs duties and Korean VAT at import (collected by Korea Customs Service, not at checkout).

C. China — Cross-Border E-Commerce (CBEC) Framework

China's Cross-Border E-Commerce (CBEC) framework, administered by the General Administration of Customs (GAC), provides a simplified customs clearance pathway for imported consumer goods purchased through qualified e-commerce platforms. Key CBEC tax provisions:

CBEC tax rates: goods imported under the CBEC framework are subject to a combined customs levy (行邮税) calculated as a percentage of transaction value. Applicable rates: 13% (books, medical equipment, food, baby formula); 20% (electronics, clothing, shoes, toys); 50% (cosmetics and items assessed at luxury level); 70% (tobacco and alcohol).

CBEC annual individual limit: each Chinese resident has an annual CBEC purchase limit of CNY 26,000 (approximately USD $3,600) and a single-transaction limit of CNY 5,000 (approximately USD $700). Orders above CNY 5,000 per transaction or exceeding the annual limit are subject to general trade tariff rates.

CBEC platform registration: international e-commerce platforms selling to Chinese consumers under the CBEC framework must be registered with the GAC. AqNova's CBEC registration status is disclosed at [aqnova.co/tax/china].

Non-CBEC imports: goods imported through non-CBEC channels (standard postal or courier imports) are subject to the general trade tariff schedule, which typically involves higher rates and more complex clearance procedures.

4.5.12 Latin America — Colombia, Chile, Argentina & Mexico

A. Nigeria — VAT & Digital Economy Tax

Nigeria's Value Added Tax Act (as amended by Finance Act 2019) imposes a 7.5% VAT rate on all taxable supplies in Nigeria (increased from 5% effective February 2020). Non-resident digital service providers supplying digital services to Nigerian consumers must register for VAT with the Federal Inland Revenue Service (FIRS) under the Finance Act 2019 Significant Economic Presence (SEP) provisions. AqNova registers with FIRS for VAT compliance where applicable to its digital service supply to Nigerian consumers.

Physical goods sold through AqNova by non-Nigerian Vendors and imported into Nigeria are subject to Nigerian import duties (NCS tariff schedule) and 7.5% VAT at import. Nigerian Vendors must issue e-invoices compliant with FIRS requirements.

B. Kenya — VAT

Kenya's Value Added Tax Act 2013 imposes a 16% standard VAT rate. Digital marketplace operators making supplies to Kenyan consumers are required to register for VAT under the Kenya Revenue Authority (KRA) digital service VAT regime effective January 1, 2021. AqNova registers with KRA where applicable and collects and remits Kenyan VAT for qualifying digital services.

C. Ghana — VAT & Digital Service Levy

Ghana imposes VAT at 15% plus a 2.5% National Health Insurance Levy (NHIL) and 2.5% Ghana Education Trust Fund (GETFund) levy, resulting in an effective total rate of approximately 21.9% on taxable supplies. Non-resident digital service providers supplying to Ghanaian consumers are subject to the same obligations under the Revenue Administration Act and VAT Act. AqNova registers and complies with applicable Ghana Revenue Authority (GRA) requirements.

D. Other African Markets

AqNova monitors and complies with applicable VAT and digital service tax obligations as they evolve across its African operating markets, including Rwanda (18% VAT), Tanzania (18% VAT; TRA registration), Egypt (14% VAT under VAT Law 67/2016), and Cameroon, Côte d'Ivoire, and Senegal (WAEMU-aligned consumption taxes). Tax obligations are reviewed with local tax advisors on a market-entry and annual basis.

4.5.14 Import Duties, Customs Tariffs & De Minimis Thresholds

Import duties and customs tariffs on cross-border orders are generally the Buyer's responsibility under AqNova's standard DDU/DAP (Delivered Duty Unpaid / Delivered at Place) terms. AqNova provides estimates of applicable import charges at checkout where data is available, but actual amounts are determined by the destination country's customs authority at the time of importation.

A. De Minimis Threshold Reference Table

B. DDP (Delivered Duty Paid) Option

Where Vendors have elected DDP (Delivered Duty Paid) terms for specific destination markets, ALL import duties, customs fees, and import VAT/GST are included in the checkout price. The Buyer pays no additional charges upon delivery. DDP listings display a "Duties & Taxes Included" badge prominently. AqNova's DDP integration works with the Vendor's designated customs broker to prepay and clear duties before delivery.

4.5.15 Buyer Tax Responsibilities — Jurisdictions Where AqNova Does Not Collect

AqNova collects consumption tax at checkout in the jurisdictions described in Sections 4.5.2 through 4.5.13. However, there are circumstances in which tax obligations remain the Buyer's direct responsibility:

4.5.16 Vendor Tax Compliance Obligations

Vendors on the AqNova Platform have independent tax compliance obligations that exist in parallel with AqNova's marketplace facilitator obligations. AqNova's collection of tax on behalf of Vendors (where applicable) does not relieve Vendors of all tax obligations:

A. Core Vendor Tax Obligations

Income tax / corporate tax: Vendors are responsible for reporting and paying income tax or corporate tax on their net profits from AqNova sales, as required by their country of establishment and any jurisdiction where they have tax presence.

VAT registration in non-MF jurisdictions: in markets where AqNova does not collect VAT as marketplace facilitator, Vendors who exceed applicable VAT registration thresholds must register independently and collect/remit VAT directly.

Customs and export compliance: Vendors must comply with export tax and customs clearance requirements in their country of origin for all cross-border shipments.

Withholding tax on cross-border Vendor payouts: in certain jurisdictions, AqNova may be required to withhold tax from Vendor payouts (e.g., India TDS on payments to non-resident Vendors; applicable US withholding on non-US Vendors). AqNova discloses applicable withholding in the Vendor's settlement statement.

GST/GSTIN for Indian Vendors: all Indian Vendors must provide a valid GSTIN. AqNova cannot facilitate Indian Vendor sales without GSTIN verification. AqNova deducts TCS from Indian Vendor payouts and remits to GSTN.

Nota Fiscal Eletrônica (NF-e) for Brazilian Vendors: all Brazilian Vendors must issue compliant NF-e for each taxable sale. AqNova's platform supports NF-e integration for Brazilian Vendors through SEFAZ-authorized issuers.

B. AqNova Tax Tooling for Vendors

AqNova provides the following tax support tools in the Vendor Dashboard:

Transaction-level tax reports: downloadable reports showing gross sales, AqNova-collected taxes (by jurisdiction), TCS deductions, and net payouts for each settlement period. Supports Vendor tax filing.

1099-K forms (US): issued to qualifying US Vendors by January 31 annually. Available for download in the Vendor Dashboard.

VAT invoices: AqNova-generated VAT invoices for applicable transactions are available for Buyer and Vendor download in the order management interface.

GST reconciliation (India): monthly GSTR-8 statements filed by AqNova on behalf of all Platform transactions are available to Vendors for GST reconciliation.

4.5.17 Tax Invoicing, Receipts & Documentation

AqNova provides tax-compliant documentation for all Platform transactions. The following documentation is available:

Order receipt / purchase confirmation: sent by email immediately upon Order Confirmation, showing: product description, quantity, unit price, tax amount (by type and rate where applicable), shipping fee, and total amount charged.

VAT invoice (EU/UK): where AqNova is the deemed supplier and collects VAT, a VAT invoice is generated and available for download in the Buyer's order history. The invoice includes AqNova's VAT registration number, the applicable VAT rate, and the VAT amount.

Tax receipt for US orders: order receipts for US orders show the state and local sales tax collected, with the applicable rate and the basis amount.

GST invoice (India): GST invoices for Indian transactions are generated by the Vendor or AqNova as applicable, showing GSTIN, HSN codes, GST rate, and TCS deduction.

Nota Fiscal (Brazil): NF-e documents are issued by Brazilian Vendors for Brazilian transactions, as required by Brazilian tax law. AqNova facilitates NF-e issuance through its platform integration.

B2B VAT invoices: Buyers purchasing for business purposes who need a VAT invoice addressed to their business entity may request a B2B invoice through their account settings (My Orders > Request Invoice) or by contacting tax@aqnova.co.

4.5.18 Contact Information — Tax & Duties

AqNova Marketplace | Global Legal Footer Framework | Section 4.5: Taxes, Duties & International Fees

© 2026 Arivon Holding Corporation. All rights reserved. Effective April 7, 2026. Version 1.0.