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About VAT and Sales Tax

Overview

FastSpring handles VAT, GST, and other transaction-related taxes.

FastSpring collects applicable VAT (value-added tax) or GST (goods and services tax) on all purchases. When you sell your products through FastSpring, we are the retailer and you are the seller. As a merchant of record, FastSpring follows laws and regulations to collect applicable taxes from buyers and then report and pay that tax to the respective government. As a seller, you need to record the payments we make to you as wholesale sales.

Most sales in the EU and some specific other geographic locations require us to collect and remit VAT or GST to the appropriate authorities. Tax rates differ by country, and customers in some locations can enter their VAT IDs as part of the checkout process if they are exempt from payment of the tax. For many sales of digital products, we do not have to collect or pay taxes on your behalf.

United States Sales Tax

Sales of physical products shipped to residents in California, and sales of digital products, subscriptions, and physical products incur a sales tax for residents in all U.S. states and regions except for Alaska, Delaware, Montana, New Hampshire, Oregon, AA, AE, AP, AS, and Puerto Rico. FastSpring complies with the rules and regulations in each state. Recent changes have been made in reaction to the Wayfair Act.

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.

Sales Tax Exemptions

Some customers may make purchases on behalf of an organization that is exempt from paying state and local sales taxes. In these cases, FastSpring can refund the sales tax to the customer's payment account 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 Support team will refund the sales tax back to the original payment account.

From the time our Support team replies to a ticket with a tax refund request, it can take a few business days for the funds to post back to the customer's payment account.

Frequently Asked Questions About U.S. Sales Tax

U.S. state and global tax regulations continuously evolve. In accordance with the recent changes to the U.S. taxation for online sales determined by the Supreme Court Wayfair ruling, FastSpring made updates to sales tax collection in the platform.

  1. What is the South Dakota v. Wayfair, Inc. case?
    The U.S. Supreme Court passed the Wayfair Ruling on June 21, 2018. The ruling allows all states to set sales tax laws on remote sales based on a series of requirements that establish economic nexus. Following this ruling, 43 states released new or updated taxation laws, with seven states planning on making updates to taxation laws as of October 1st, 2019. The U.S. Supreme Court case focused on sales tax application for internet retailers who sell into specific states without any physical presence in the state. The Supreme Court ruled in favor of South Dakota, which granted individual states the authority to impose sale taxes on out-of-state transactions. The ruling overturned the Quill Corp. v. North Dakota (1992) ruling, which barred states from collecting sales tax on Internet sales unless those retailers had a physical presence in the taxing state.
     
  2. What about U.S. sales tax is changing?
    The U.S. Supreme Court ruled in favor of the state in South Dakota v. Wayfair, Inc. on June 21, 2018, allowing all states to set sales tax laws (e.g., economic nexus). This ruling means that each U.S. state can pass a law requiring ecommerce merchants to collect and remit sales tax on purchases. So far, a total of 43 states have released new or updated laws following the Supreme Court ruling. Seven more states planned to enact their own new or updated tax laws as of October 1st, 2019.
     
  3. What does "economic nexus" mean?
    Economic nexus refers to a tax collection obligation imposed on businesses that reach a specific level of economic activity within a state. It can be based entirely on sales revenue, entirely on transaction volume, or on a combination of both. As with many sales tax laws, economic nexus criteria may vary by state. All such laws are designed to level the playing field between out-of-state sellers and brick-and-mortar businesses.
     
  4. Who is impacted by the South Dakota economic nexus law?
    The ruling applies to remote sellers (online and off-line) that are not currently registered with a state and meet the threshold requirements. As a Merchant of Record on behalf of thousands of sellers, FastSpring is legally responsible for collecting and remitting sales tax in accordance with the economic nexus requirements set by each state.
     
  5. My customers weren't taxed before, why are they being taxed now?
    To meet the new requirements for specific state tax laws, the FastSpring platform automatically charges sales tax based on the location of the customer. Therefore, depending on the location of the customer, FastSpring charges sales tax in accordance with the new sales tax laws determined by the state.
     
  6. The ruling indicates that laws are changing soon, but there is no timeframe. When do these new laws take effect?
    There is no set timeline for enacting new sale tax laws in accordance with the Wayfair ruling, since the timeline may vary on a state-by-state basis. FastSpring is responsible for maintaining compliance with the evolving sales tax laws as they are released and adjusting the platform accordingly.
     
  7. My customer is tax-exempt in the U.S. Can my customer receive a tax refund?
    Yes, a buyer with a U.S. state tax exemption can receive a refund. To receive a refund, your customer must submit their government tax exemption document via https://questionacharge.com along with their order information.
     
  8. Should I change my pricing model in reaction to these changes?
    At this time, we recommend you do not adjust your pricing model. State tax laws are frequently changing, and it is difficult to know whether adjusting a pricing model would be beneficial to your business.

Taxes on Certain Non-U.S. Transactions

CountryCountry CodeTax Rate %Tax ClassFastSpring TaxIDExemption Method (enter ID, submit exemption form, None)Local Tax NameSubscriptionsTaxable Products:

Digital/Physical/Service
AustraliaAU10GSTARN 3000 0970 3953Enter Valid GST IDGoods and Services TaxYes (Recurring and Non-Recurring)

Digital/Service

For Physical Goods - Buyer pays import Tax

AustriaAT20VATEU826012240Enter Valid VAT IDUmsatzsteuerYes (Recurring and Non-Recurring)Digital/Service
BelgiumBE21VATEU826012240Enter Valid VAT ID

Belasting over de toegevoegde waarde (BTW)

Taxe sur la valeur ajoutée (TVA)

Yes (Recurring and Non-Recurring)Digital/Service
BulgariaBG20VATEU826012240Enter Valid VAT IDDanak varhu dobavenata stoinost (DDS)Yes (Recurring and Non-Recurring)Digital/Service
CroatiaHR25VATEU826012240Enter Valid VAT IDPorez na dodanu vrijednost (PDV)Yes (Recurring and Non-Recurring)Digital/Service
CyprusCY19VATEU826012240Enter Valid VAT IDValue Added TaxYes (Recurring and Non-Recurring)Digital/Service
Czech RepublicCZ21VATEU826012240Enter Valid VAT IDDan z pridane hodnotyYes (Recurring and Non-Recurring)Digital/Service
DenmarkDK25VATEU826012240Enter Valid VAT IDMerværdiafgiftsloven (Momsloven)Yes (Recurring and Non-Recurring)Digital/Service
EstoniaEE20VATEU826012240Enter Valid VAT IDKäibemaksYes (Recurring and Non-Recurring)Digital/Service
FinlandFI24VATEU826012240Enter Valid VAT IDArvonlisäveroYes (Recurring and Non-Recurring)Digital/Service
FranceFR20VATEU826012240Enter Valid VAT IDTaxe sur la valeur ajoutée (TVA)Yes (Recurring and Non-Recurring)Digital/Service
GermanyDE19VATEU826012240Enter Valid VAT IDUmsatzsteuer/MehrwertsteuerYes (Recurring and Non-Recurring)Digital/Service
GreeceGR24VATEU826012240Enter Valid VAT IDForos prostithemenis aksias (FPA)Yes (Recurring and Non-Recurring)Digital/Service
HungaryHU27VATEU826012240Enter Valid VAT IDÁltalános forgalmi adóYes (Recurring and Non-Recurring)Digital/Service
IndiaIN18Sales and Service Tax9917USA29028OS1Enter Valid GST ID

Goods and Services Tax (GST)

NOTE: We moved India from Sales and Service Tax to GST on July 1st, 2017.

Yes (Recurring and Non-Recurring)Digital/Service
IrelandIE23VATEU826012240Enter Valid VAT IDValue Added TaxYes (Recurring and Non-Recurring)Digital/Service
ItalyIT22VATEU826012240Enter Valid VAT IDImposta sul valore aggiunto (IVA)Yes (Recurring and Non-Recurring)Digital/Service
JapanJP10CT00062No reverse charge. No exemption.ShouhizeiYes (Recurring and Non-Recurring)Digital/Service
LatviaLV21VATEU826012240Enter Valid VAT IDPievienot?s vert?bas nodoklis (PVN)Yes (Recurring and Non-Recurring)Digital/Service
LithuaniaLT21VATEU826012240Enter Valid VAT IDPridetines vertes mokestisYes (Recurring and Non-Recurring)Digital/Service
LuxembourgLU17VATEU826012240Enter Valid VAT IDTaxe sur la valeur ajoutée (TVA)Yes (Recurring and Non-Recurring)Digital/Service
MaltaMT18VATEU826012240Enter Valid VAT IDIt-taxxa fuq il-valur mizjudYes (Recurring and Non-Recurring)Digital/Service
NetherlandsNL21VATEU826012240Enter Valid VAT IDBelasting over de toegevoegde waarde (BTW)Yes (Recurring and Non-Recurring)Digital/Service
New ZealandNZ15GST122-060-896Enter Valid GST IDGoods and Services TaxYes (Recurring and Non-Recurring)Digital/Service
NorwayNO25VAT2017474Enter Valid VAT IDMerverdiavgift

Yes (Recurring and Non-Recurring)

 

Digital/Service

 NOTE

The 350 NOK threshold only applies to physical goods, for which we do not collect VAT.
PolandPL23VATEU826012240Enter Valid VAT IDPodatek od towarow i uslugYes (Recurring and Non-Recurring)Digital/Service
PortugalPT23VATEU826012240Enter Valid VAT IDImposto sobre o valor acrescentado (IVA)Yes (Recurring and Non-Recurring)Digital/Service
RomaniaRO19VATEU826012240Enter Valid VAT IDTaxa pe valoarea adaugataYes (Recurring and Non-Recurring)Digital/Service
SingaporeSG7GSTM90373079GforthcomingGoods and Services TaxYes (Recurring and Non-Recurring)Digital/Service
Slovak RepublicSK20VATEU826012240Enter Valid VAT IDDa? z pridanej hodnoty (DPH)Yes (Recurring and Non-Recurring)Digital/Service
SloveniaSI22VATEU826012240Enter Valid VAT IDDavek na dodano vrednost (DDV)Yes (Recurring and Non-Recurring)Digital/Service
South AfricaZA15VAT4800277289NoneValue Added TaxYes (Recurring only)None
South KoreaKR10VAT754-80-00583Enter Valid VAT IDBoo-ga-ga-chi-seYes (Recurring and Non-Recurring)Digital/Service
SpainES21VATEU826012240Enter Valid VAT IDImpuesto sobre el Valor Añadido (IVA)Yes (Recurring and Non-Recurring)Digital/Service
SwedenSE25VATEU826012240Enter Valid VAT IDMervärdesskatt (Moms)Yes (Recurring and Non-Recurring)Digital/Service
SwitzerlandCH7.7VATCHE-407.203.569 MWSTNone

Mehrwertsteuer (MWST)

Taxe sur la valeur ajoutée (TVA)

Imposta sul valore aggiunto (IVA)

Yes (Recurring and Non-Recurring)Digital/Service
TaiwanTW5VAT42528194Enter Valid VAT IDValue Added TaxYes (Recurring and Non-Recurring)Digital/Service
United KingdomGB20VATEU826012240Enter Valid VAT IDValue Added TaxYes (Recurring and Non-Recurring)Digital/Service

 

VAT and GST Exemption

In some locations, customers that are exempt from paying VAT or GST can prevent the tax from being collected on their orders by providing a valid VAT ID or GST ID at the time of purchase. For those providing a valid ID, FastSpring does not collect tax, and the ID entered by the customer appears on the invoice we provide upon purchase completion.

VAT / GST Refunds

Occasionally, an exempt customer may neglect or be unable to enter a VAT ID or GST ID at the time of the purchase. In such cases, please instruct the customer to contact us via https://questionacharge.com with the order reference/ID and the valid VAT ID or GST ID. If we receive the request within 30 days of the purchase, our Buyer Support team will promptly issue a refund for the tax that FastSpring collected on the order. We will issue a credit to the original payment method.

FastSpring Local Tax Registration

The FastSpring EU VAT Number EU826012240. Many companies have a VAT that begins with the two-letter language ISO 639-1 code indicating where their company is located. The number begins with "EU" because FastSpring is located in the United States, not in a European Union member state.

You cannot verify our VAT number by the usual VAT validation services. If you need to verify it, contact the Mutual Assistance Office (a sub-department of the local VAT collection agency) in your local EU country. Each of those local offices has a database that can verify this type of VAT ID.

Australia Goods and Services Tax

 The FastSpring tax ID for Australia is ARN 3000 0970 3953. FastSpring collects Goods and Services Tax (GST) for sales of digital products and subscriptions made to customers located in Australia

Eligible businesses making digital purchases can avoid paying GST by providing their valid GST ID at the time of purchase. For those providing a GST ID, FastSpringn does not collect GST, and the GST ID appears on the invoice we provide at purchase completion.

Iceland

As of June 1, 2020 FastSpring collects applicable taxes for purchases in Iceland.

India Goods and Services Tax

The current FastSpring tax ID for India is 9917USA29028OS1. FastSpring collects Goods and Services Tax (GST) for sales of digital products and subscriptions made to customers located in India. The former FastSpring tax ID for India Sales and Service Tax was NTT0571USASR030.

FastSpring changed from collecting Sales and Service Tax to GST on July 1, 2017. Eligible businesses making digital purchases can avoid paying GST by providing their valid GST ID at the time of purchase. For those providing a GST ID, FastSpring does not collect GST, and the GST ID appears on the invoice we provide at purchase completion.

Japan Consumption Tax

The FastSpring NTA registration number for Japan is 00062. FastSpring is required to collect and remit Japan's Consumption Tax to Japan's National Tax Authority (NTA).

On October 1, 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 your merchant- and seller-of-record, FastSpring has implemented changes to comply with this legislation. We began charging, collecting, and remitting the new 10% consumption tax in Japan for off-shore sales of digital products and subscriptions to Japanese consumers. This new tax rate is merely assessed and added to the total product amount.

Liechtenstein

The FastSpring VAT number for Liechtenstein is CHE-407.203.569 MWST. FastSpring collects applicable taxes for purchases in Liechtenstein.

New Zealand GST

The FastSpring IRD Number for New Zealand is 122-060-896. FastSpring collects GST for sales of digital products and subscriptions made to customers located in New Zealand

Eligible businesses making digital purchases can avoid paying GST by providing their valid GST ID at the time of purchase. For those providing a GST ID, FastSpring does not collect GST, and the GST ID appears on the invoice we provide at purchase completion.

Norway VAT

The FastSpring VAT number for Norway is 2017474. When a company's yearly revenue in Norway exceeds a certain threshold, that company is required by law to collect and pay VAT in Norway. FastSpring has exceeded this minimum threshold, so sales of digital products and subscriptions made to customers located in Norway include VAT.

Eligible Norwegian businesses making digital purchases can avoid paying VAT by providing their valid VAT ID at the time of purchase. For those providing a VAT ID, FastSpring does not collect VAT, and the VAT ID appears on the invoice we provide at purchase completion.

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.norway@skatteetaten.no or info@voesnorway.com.

Russia

The FastSpring Russian taxpayer identification number (INN) is 9909471211, active as of August 5, 2020.

Singapore GST

The FastSpring GST registration number for Singapore is M90373079G. FastSpring collects GST for sales of digital products and recurring subscriptions made to customers located in Singapore. 

South Africa VAT

The FastSpring VAT number for South Africa is 4800277289. FastSpring collects VAT for sales of recurring subscriptions made to customers located in South Africa. There is no way to be exempt from VAT in South Africa for these sales.

South Korea VAT

The FastSpring VAT number for South Korea is 754-80-00583. FastSpring collects VAT for sales of digital products and subscriptions made to customers located in South Korea.

Eligible businesses making digital purchases can avoid paying VAT by providing their valid VAT ID at the time of purchase. For those providing a VAT ID, FastSpring does not collect VAT, and the VAT ID appears on the invoice we provide at purchase completion.

Switzerland VAT

The FastSpring VAT Number for Switzerland is CHE-407.203.569 MWST. When a company's yearly revenue in Switzerland exceeds a certain threshold, that company is required by law to collect and pay VAT in Switzerland. FastSpring has exceeded this minimum threshold, so sales made to customers located in Switzerland include VAT. There is no way to be exempt from VAT in Switzerland for these sales.

Taiwan VAT

The FastSpring VAT number for Taiwan is 42528194. FastSpring collects VAT for sales of digital products and subscriptions made to customers located in Taiwan.

Eligible businesses making digital purchases can avoid paying VAT by providing their valid VAT ID at the time of purchase. For those providing a VAT ID, FastSpring does not collect VAT, and the VAT ID appears on the invoice we provide at purchase completion.

Turkey

As of June 1, 2020 FastSpring collects applicable taxes for purchases in Turkey.

Your Personal or Company 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 click the Store menu and select Account Summary.

Click your balance, which is 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. A sample invoice appears below.

You can also download a sample invoice in the XLS (Excel spreadsheet) format from the following link: Generic Invoice.xls.

EU Changes in 2015

On January 1, 2015, significant changes were made to the VAT (value-added tax) in the European Union. Before 2015, VAT was based on the location of the business. It is now based on the location of the customer. FastSpring detects each customer's location via IP address, which is the suggested method, and adds the correct amount of VAT, if applicable. You do not need to do anything; we have you covered.

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