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VAT and Sales Tax

Part of the FastSpring platform and operating model means we, as the Selling Party, take on the liability and obligation to collect, file and remit taxes on sales of digital goods. We calculate taxes in real time, based on the end users location and type of product purchased.

Applicable taxes are automatically applied during purchase as required by local tax regulations in the end users country.

Tax Rates

Using industry-leading proprietary and third-party tools, our expert team of in-house specialists monitor tax rates in all regions around the world to ensure you’re fully compliant.

Changes to Tax Rates

  • August 2021: We added support for VAT collection and remittance in Belarus, Serbia, Mexico, and Thailand, as well as support for Malaysia’s SST.
  • July 2021: Effective July 1, significant changes to the Goods and Services Tax and Harmonized Sales Tax (GST/HST) took effect in Canada. This change imposes new compliance requirements on businesses operating outside of Canada who sell taxable digital products or services to customers in Canada. To make this change seamless for all of our sellers, we have updated our remittance framework to support this requirement. There is no action needed from Sellers and tax rates will reflect these changes as of July 1, 2021.
  • June 2021: Tax collections in new jurisdictions to keep you up to date with changing country regulations to include Indonesia, British Columbia, and Chile.
  • May 2021: Increase the number of supported product tax categories and add the ability to bulk apply a single tax category to all the products in your Storefront.
  • September 2020: We upgraded our tax management service to allow the application of taxes at a more granular level. Previously only 13 product categories were available, but we expanded the selection to include 35 product tax categories. We also created a product tax questionnaire to help you select a product code. See Product Tax Category for more information.

Tax Exemptions

Eligible products may qualify for zero or reduced tax rates.

U.S. Tax Exemptions

We launched a sales tax exemption feature in 2020 available to qualifying Sellers where customers can purchase a Seller’s product at zero or reduced tax rates if considered a tax exempt organization.

Tax exemption is added to Storefronts upon request for Sellers who meet certain qualifications. To qualify for any reduced rates, you must provide FastSpring with a valid tax exempt certificate, ID number, and state of issuance. You can submit a copy of your tax exemption certificate or other supporting paperwork issued by the state government via the Seller Support portal.

Upon receipt of your paperwork, FastSpring will refund the sales tax back to the original payment account. Please note that it may take a few business days for the funds to post back to the Consumer’s payment account.

VAT and GST Exemptions

In certain countries, the sale of (Business-to-Business transactions) goods and services qualify for self reporting, or 0% rate with a valid VAT/GST identification number in the country of import.

This is known as a reverse charge mechanism where a Buyer takes on the responsibility to assess and remit tax in lieu of the Seller. In this case, FastSpring will not charge tax but inform the Buyer of the responsibility to self assess and include their VAT/GST ID on the issued invoice. This is not available on sales to individual consumers (Business-to-Customer transactions) and not available in every country.

If a customer forgets or is unable to enter a VAT ID or GST ID at the time of purchase, they can submit a copy of their valid VAT ID or GST ID along with their order reference/order ID within 30 days of the purchase. FastSpring will then issue a credit to the original payment method.

Tax Jurisdictions and Identification Numbers

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.

Collection Jurisdiction FastSpring Identification Number Effective Date Tax Collected Standard Rate Zero/Exempt Rate
Australia ARN 3000 0970 3953 July 1, 2017 GST 10% 0% *
Belarus 102401278 September 1, 2021 VAT 20% 0% *
Canada 76324 2542 July 1, 2021 GST 5% 0% *
     Alberta July 1, 2021 GST 5% 0% *
     British Colombia PST-1445-0210 June 1, 2021 GST + PST 12% 0% *
     Manitoba July 1, 2021 GST 5% 0% *
     New Brunswick July 1, 2021 HST 15% 0% *
     Newfoundland and Labrador July 1, 2021 HST 15% 0% *
     Northwest Territories July 1, 2021 GST 5% 0% *
     Nova Scotia July 1, 2021 HST 15% 0% *
     Nunavut July 1, 2021 GST 5% 0% *
     Ontario July 1, 2021 HST 13% 0% *
     Prince Edward Island July 1, 2021 HST 15% 0% *
     Quebec NR00016829 September 28, 2020 GST + QST 14.975% 0% *
     Saskatchewan 7319775 October 1, 2020 GST + PST 11% 0% *
     Yukon July 1, 2021 GST 5% 0% *
Chile 59.300.600-K June 1, 2021 VAT 19% 0% *
Colombia 700258443 September 30, 2020 VAT 19% 0% *
European Union EU372017645 January 1, 2015 VAT Various 0%
     Austria EU372017645 January 1, 2015 VAT 20% 0%
     Belgium EU372017645 January 1, 2015 VAT 21% 0% *
     Bulgaria EU372017645 January 1, 2015 VAT 20% 0% *
     Croatia EU372017645 January 1, 2015 VAT 25% 0%
     Cyprus EU372017645 January 1, 2015 VAT 19% 0%
     Czech Republic EU372017645 January 1, 2015 VAT 21% 0%
     Denmark EU372017645 January 1, 2015 VAT 25% 0%
     Estonia EU372017645 January 1, 2015 VAT 20% 0%
     Finland EU372017645 January 1, 2015 VAT 24% 0%
     France EU372017645 January 1, 2015 VAT 20% 0%
     Germany EU372017645 January 1, 2015 VAT 19% 0%
     Greece EU372017645 January 1, 2015 VAT 24% 0%
     Hungary EU372017645 January 1, 2015 VAT 27% 0%
     Ireland EU372017645 January 1, 2015 VAT 23%* 0%
     Italy EU372017645 January 1, 2015 VAT 22% 0%
     Latvia EU372017645 January 1, 2015 VAT 21% 0%
     Lithuania EU372017645 January 1, 2015 VAT 21% 0%
     Luxembourg EU372017645 January 1, 2015 VAT 17% 0%
     Malta EU372017645 January 1, 2015 VAT 18% 0%
     Netherlands EU372017645 January 1, 2015 VAT 21% 0%
     Poland EU372017645 January 1, 2015 VAT 23% 0%
     Portugal EU372017645 January 1, 2015 VAT 23% 0%
     Romania EU372017645 January 1, 2015 VAT 19% 0%
     Slovakia EU372017645 January 1, 2015 VAT 20% 0%
     Slovenia EU372017645 January 1, 2015 VAT 22% 0%
     Spain EU372017645 January 1, 2015 VAT 21% 0%
     Sweden EU372017645 January 1, 2015 VAT 25% 0%
Iceland 137842 June 1, 2020 VAT 24% 0% *
India 9917USA290280S1 March 24, 2017 GST 18% 0% *
Indonesia 02.162.942.3-053.000 June 1, 2021 VAT 10% 0% *
Japan 8700150073619 June 24, 2020 CST 10% 0% *
Malaysia 21000020 August 25, 2021 SST 6% Exemption does not apply on B2B
Mexico

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September 1, 2021 VAT 16% Exemption does not apply on B2B
New Zealand 122-060-896 March 1, 2017 GST 15% 0% *
Norway 2017474 January 1, 2017 VAT 25% 0% *
Russia INN: 9909471211 August 5, 2020 VAT 20% Exemption does not apply on B2B
Saudi Arabia 310755583100003 November 1, 2020 VAT 15% 0% *
Serbia 112641811 September 1, 2021 VAT 20% 0% *
Singapore M90373079G February 1, 2020 GST 7% 0% *
South Africa 4800277289 February 1, 2020 VAT 15% Exemption does not apply on B2B
South Korea 754-80-00583 February 1, 2020 VAT 10% 0% *
Switzerland CHE-407.203.569 MWST April 1, 2013 VAT 7.7% Exemption does not apply on B2B
Taiwan 42528194 May 1, 2017 VAT 5% 0% *
Thailand 0993000457293 September 1, 2021 VAT 7% 0% *
Turkey 1871377951 June 1, 2020 VAT 18% 0% *
United Arab Emirates (UAE) 100442919500003 February 4, 2021 VAT 5% 0% *
United Kingdom 375 3691 65 January 1, 2021 VAT 20% 0% *
Tax Exemption is not currently supported by Digital Invoicing and Interactive Quotes. However, for jurisdictions where there is a * in the Zero / Exempt Rate column, Tax Exemption will be supported by the end of 2021. If the column reads “Exemption does not apply on B2B, ” tax exemption will remain unsupported in that jurisdiction.

If you need to verify any FastSpring Identification number, contact the Mutual Assistance Office (a sub-department of the local VAT collection agency) in your local country.

Additional Disclosures

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.norway@skatteetaten.no or info@voesnorway.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. To do so, follow the steps outlined below:

  1. In the FastSpring App, navigate to your Account Summary.
  2. Click your balance, shown in blue, to see your Completed Payments.
  3. Record the values as Wholesale Sales in your accounting system.