VAT and Sales Tax

Table of Contents

• Tax Jurisdictions and Corresponding ID Numbers
  • Africa
  • Asia and the Pacific
  • Europe
  • North and South America
• US Sales Tax
• Tax Rates
  • Tax Rate Changes

As Merchant of Record, FastSpring is responsible to collect, file, and remit taxes for sales through our platform. We calculate taxes in real time based on customers’ location and the type of product they purchase from you. FastSpring automatically applies these taxes at checkout, as required by local regulations in the customer’s country. 

Tax Jurisdictions and Identification Numbers

FastSpring assesses and collects indirect taxes for each individual product and transaction. This is based on the taxability rules that each jurisdiction issues. Most products will have a 0% VAT rate applied. This may vary depending on the customer’s country. Eligible businesses can avoid these rates with a valid VAT or GST ID. 

To verify a FastSpring Identification Number, contact the Mutual Assistance Office in your local country.

Africa

Asia and the Pacific

Europe

North and South America

United States Sales Tax

FastSpring complies with the rules and regulations in each state. FastSpring is registered and collects sales tax in all 45 US states with sales tax regimes. (This excludes Alaska, Delaware, Montana, New Hampshire, and Oregon. Sales tax is computed using the location of a user, based on information provided or saved during checkout. This is assumed to be the purchaser unless the gift or purchase on behalf of functionality is selected and recipient information requested. Address information, including country and postal code is required to complete and properly tax transactions. FastSpring has elected remote seller methodology to use flat tax rates in all states where allowed.

• Sales & Use Tax Resale Certification (PDF)
• Additional State Exemption Certificates

Tax Rates

Our specialists monitor tax rates in all regions of the world to ensure your tax rates are fully compliant. For more information, see the resources below. 

• US Sales Tax rates
• International VAT and GST rates

Tax Rate Changes

• August 2021: FastSpring now supports VAT collection and remittance in Belarus, Serbia, Mexico, and Thailand. We also support Malaysia’s SST. 
• July 2021: Canada’s Goods and Services Tax (GST) and Harmonized Sales Tax (HST) imposes new compliance requirements for businesses that operate outside of Canada and sell taxable digital goods to customers in Canada. FastSpring has updated our remittance framework to support this requirement. 
• June 2021: FastSpring updated tax collections in the following jurisdictions: British Columbia, Chile, Indonesia. 
• May 2021: FastSpring increased the number of supported product tax categories. You can now apply one category to all products in bulk. 
• September 2020: We upgraded our tax management service to allow a more granular application of taxes. We now have 35 product tax categories. We also created a questionnaire to help you select the most appropriate product code. See Product Tax Category for more information.