VAT and Sales Tax
FastSpring handles all Sales, Use, VAT, GST, HST, PST, QST, and other transaction-related tax obligations.
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.
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.
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%|
|New Zealand||122-060-896||March 1, 2017||GST||15%||0%|
|Malaysia||21000020||August 25, 2021||SST||6%||Exemption does not apply on B2B|
|Mexico||pending||September 1, 2021||VAT||16%||Exemption does not apply on B2B|
|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||pending||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%|
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.
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.email@example.com or firstname.lastname@example.org.
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.