VAT and Sales Tax
FastSpring handles VAT, GST, and other transaction-related taxes.
The FastSpring platform includes a tax service that provides accurate tax rates to your customers in real time, based on their specific location, all around the globe. Applicable taxes are automatically applied during purchase based on location and product type. We then collect, file, and remit payment on your behalf.
FastSpring uses a leading third party service to monitor tax rates in all regions around the world.
Changes to Tax Rates
- September 2020: FastSpring upgraded our tax service to apply more accurate rates. In some cases, tax rates for your products will change slightly to be compliant or become eligible for tax-exemption in certain regions.
- October 2020: The FastSpring App includes additional product tax categories to select during product configuration.
Many types of digital products are exempt from tax. Some products are not except from tax but may be purchased by tax-exempt organizations.
U.S. Tax Exemptions
FastSpring can refund the sales tax to tax-exempt organizations after the transaction is complete. At this time, there is no way to prevent the sales tax from being collected on the order initially.
Customers can submit a copy of their tax exemption certificate or other supporting paperwork issued by the state government at https://questionacharge.com along with their order reference/order ID. Upon receipt of the paperwork, our FastSpring will refund the sales tax back to the original payment account. It can take a few business days for the funds to post back to the customer's payment account.
VAT and GST Exemptions
Customers in some locations can enter their VAT ID or GST ID during the checkout process if they are exempt from payment of the tax. With a valid ID, FastSpring does not collect tax, and the ID entered by the customer appears on the invoice we provide upon purchase completion.
If a customer forgets or is unable to enter a VAT ID or GST ID at the time of the purchase, they can submit a copy of their valid VAT ID or GST ID at https://questionacharge.com along with their order reference/order ID within 30 days of the purchase. FastSpring will issue a credit to the original payment method.
Tax Jurisdictions and Identification Numbers
Bright Market LLC (dba FastSpring)
As of October 31st, FastSpring assesses and collects indirect taxes based on products taxability rules issued by each country in the following international jurisdictions. Most products available through the FastSpring platform will have a standard or zero percent VAT rate applied, subject to the purchaser and country of use. Eligible businesses making digital purchases can avoid paying VAT/GST by providing a valid VAT/GST identification number at the time of purchase.
Many companies have a VAT that begins with the two-letter language ISO 639-1 code indicating where their company is located. The FastSpring European Union number begins with "EU" because FastSpring is located in the United States. If you need to verify a FastSpring VAT number, contact the Mutual Assistance Office (a sub-department of the local VAT collection agency) in your local country.
|Collection Jurisdiction||FastSpring Identification Number||Effective Date||Tax Collected||Standard Rate||Reduced Rate||Zero/Exempt Rate|
|Australia||ARN 3000 0970 3953||July 1, 2017||GST||10%||n/a||0%|
|Canada - Quebec||NR00016829||September 28, 2020||QST||9.975%||n/a||0%|
|Canada - Saskatchewan||7319775||October 1, 2020||PST||6%||n/a||0%|
|Colombia||Pending Registration||Pending Registration||VAT||19%||5%||0%|
|European Union||EU372017645||January 1, 2015||VAT||Various||Various||0%|
|Austria||EU372017645||January 1, 2015||VAT||20%||13% & 10%||0%|
|Belgium||EU372017645||January 1, 2015||VAT||21%||12% & 6%||0%|
|Bulgaria||EU372017645||January 1, 2015||VAT||20%||9%||0%|
|Croatia||EU372017645||January 1, 2015||VAT||25%||13% & 5%||0%|
|Cyprus||EU372017645||January 1, 2015||VAT||19%||9% & 5%||0%|
|Czech Republic||EU372017645||January 1, 2015||VAT||21%||15% & 10%||0%|
|Denmark||EU372017645||January 1, 2015||VAT||25%||n/a||0%|
|Estonia||EU372017645||January 1, 2015||VAT||20%||9%||0%|
|Finland||EU372017645||January 1, 2015||VAT||24%||14% & 10%||0%|
|France||EU372017645||January 1, 2015||VAT||20%||10%, 5.5% & 2.1%||0%|
|Germany||EU372017645||January 1, 2015||VAT||19%||7%||0%|
|Greece||EU372017645||January 1, 2015||VAT||24%||13% & 6%||0%|
|Hungary||EU372017645||January 1, 2015||VAT||27%||18% & 5%||0%|
|Ireland||EU372017645||January 1, 2015||VAT||23%*||13.5%, 9% & 4.8%||0%|
|Italy||EU372017645||January 1, 2015||VAT||22%||10%, 5% & 4%||0%|
|Latvia||EU372017645||January 1, 2015||VAT||21%||12% & 5%||0%|
|Lithuania||EU372017645||January 1, 2015||VAT||21%||9% & 5%||0%|
|Luxembourg||EU372017645||January 1, 2015||VAT||17%||14%, 8% & 3%||0%|
|Malta||EU372017645||January 1, 2015||VAT||18%||7% & 5%||0%|
|Netherlands||EU372017645||January 1, 2015||VAT||21%||9%||0%|
|Poland||EU372017645||January 1, 2015||VAT||23%||8% & 5%||0%|
|Portugal||EU372017645||January 1, 2015||VAT||23%||13% & 6%||0%|
|Romania||EU372017645||January 1, 2015||VAT||19%||9% & 5%||0%|
|Slovakia||EU372017645||January 1, 2015||VAT||20%||10%||0%|
|Slovenia||EU372017645||January 1, 2015||VAT||22%||9.5% & 5%||0%|
|Spain||EU372017645||January 1, 2015||VAT||21%||10% & 4%||0%|
|Sweden||EU372017645||January 1, 2015||VAT||25%||12% & 6%||0%|
|Iceland||137842||June 1, 2020||VAT||24%||11%||0%|
|India||9917USA290280S1||March 24, 2017||GST||18%||5%||0%|
|Japan||8700150073619||June 24, 2020||CST||10%||8%||0%|
|New Zealand||122-060-896||March 1, 2017||GST||15%||9%||0%|
|Norway||2017474||January 1, 2017||VAT||25%||var.||0%|
|Russia||INN: 9909471211||August 5, 2020||VAT||20%||16.67%||n/a|
|Saudi Arabia||310755583100003||November 1, 2020||VAT||15%||n/a||0%|
|Singapore||M90373079G||February 1, 2020||GST||7%||n/a||0%|
|South Africa||4800277289||February 1, 2020||VAT||15%||n/a||n/a|
|South Korea||754-80-00583||February 1, 2020||VAT||10%||n/a||0%|
|Switzerland||CHE-407.203.569 MWST||April 1, 2013||VAT||7.7%||3.7% & 2.5%||n/a|
|Taiwan||42528194||May 1, 2017||VAT||5%||n/a||0%|
|Turkey||1871377951||June 1, 2020||VAT||18%||8% & 1%||0%|
|United Arab Emirates (UAE)||100442919500003||February 4, 2021||VAT||5%||n/a||0%|
|United Kingdom||Pending Registration||Pending Registration||VAT||20%||5%||0%|
FastSpring is required to collect and remit Japan's Consumption Tax to Japan's National Tax Authority (NTA). On 1 October 2019, an amendment to the Japan Consumption Tax Act took effect for all non-resident or off-shore sellers of digital products and services to consumers in Japan. As merchant of record, FastSpring complies with this legislation. Companies such as FastSpring that are registered in the simplified VAT register VOES Norway are not listed in the online Registry. If you need verification of FastSpring's VAT number for Norway, you can contact VOES.firstname.lastname@example.org or email@example.com.
United States Sales Tax
FastSpring complies with the rules and regulations in each state. For gift purchases, sales tax is calculated based on the location of the recipient rather than the purchaser so the purchaser must provide the recipient's ZIP code at the time of the order.
Seller Accounting and Taxes
The correct way to account for sales that go through FastSpring is to record each payment we send you as Wholesale Sales. It is legally the same scenario as if you made widgets, sent them to Walmart to sell, and they pay you wholesale. You do not record the total sales Walmart made or record Walmart's profit margin as an expense. Instead, record the money Walmart sent you as wholesale sales.
You should handle your accounting and taxes for the sales through FastSpring in the same way. From a tax standpoint, the only thing you need to do is
- In the FastSpring App, navigate to your Account Summary.
- Click your balance, shown in blue, to see your Completed Payments.
- Record the values as Wholesale Sales in your accounting system.
Although not required by FastSpring, some clients, especially those located in Germany, open a support ticket for each payment and attach an invoice, showing the amount of their wholesale sales. You can download a sample invoice in the XLS format from: Generic Invoice.xls.