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VAT and Sales Tax

Overview

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.

Tax Rates

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.

Tax Exemptions

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.

FastSpring Local Tax Registration

The FastSpring EU VAT Number is 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.

FastSpring Tax IDs

Australia: ARN 3000 0970 3953
Austria: EU826012240
Belgium: EU826012240
Bulgaria: EU826012240
Canada: NR00016829 (Quebec), 7319775 (Saskatchewan)
Croatia: EU826012240
Cyprus: EU826012240
Czech Republic: EU826012240
Denmark: EU826012240
Estonia: EU826012240
Finland: EU826012240
France: EU826012240
Germany: EU826012240
Hungary: EU826012240
India: 9917USA29028OS1
Ireland: EU826012240
Italy: EU826012240
Japan: 00062
Latvia: EU826012240
Liechtenstein: CHE-407.203.569 MWST
Lithuania: EU826012240
Luxembourg: EU826012240
Malta: EU826012240
Netherlands: EU826012240
New Zealand: 122-060-896
Norway: 2017474
Poland: EU826012240
Portugal: EU826012240
Romania: EU826012240
Russia: 9909471211
Singapore: M90373079G
Slovak Republic: EU826012240
Slovenia: EU826012240
South Africa: 4800277289
South Korea: 754-80-00583
Spain: EU826012240
Sweden:  EU826012240
Switzerland: CHE-407.203.569 MWST
Taiwan: 42528194
United Kingdom: EU826012240

Australia

FastSpring collects applicable Goods and Services Tax (GST) for sales 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, FastSpring does not collect GST, and the GST ID appears on the invoice we provide at purchase completion.

Canada

As of 25 September 2020, FastSpring collects applicable taxes for purchases in Quebec. As of 1 October 2020, FastSpring collects applicable taxes for purchases in Saskatchewan.

Iceland

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

India

FastSpring collects applicable Goods and Services Tax (GST) for sales to customers located in India. The former FastSpring tax ID for India Sales and Service Tax was NTT0571USASR030. Eligible businesses making digital purchases can avoid paying GST by providing their valid GST ID at the time of purchase.

Japan

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 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.

Liechtenstein

FastSpring collects applicable taxes for purchases in Liechtenstein.

New Zealand

FastSpring collects applicable GST for sales 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

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.

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

As of 5 August 2020, FastSpring collects applicable taxes for purchases in Russia.

Singapore

FastSpring collects applicable GST for sales in Singapore. 

South Africa

FastSpring collects applicable VAT for sales in South Africa. There is no way to be exempt from VAT in South Africa for these sales.

South Korea

FastSpring collects applicable VAT for sales in South Korea. Eligible businesses making digital purchases can avoid paying VAT by providing their valid VAT ID at the time of purchase.

Switzerland

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

FastSpring collects applicable VAT for sales in Taiwan. Eligible businesses making digital purchases can avoid paying VAT by providing their valid VAT ID at the time of purchase.

Turkey

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

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

  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.

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.

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