How are VAT and sales tax handled?
Overview
FastSpring collects applicable sales tax, VAT (value added tax), Goods and Services tax (GST), and Japanese Consumption Tax taxes on all purchases.
How FastSpring Handles Taxes
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 as if each sale were made from California in the United States. We collect all applicable taxes from buyers and then report and pay that tax to the respective government. For many sales of digital products, we do not have to collect or pay taxes on your behalf. As a seller, you need to record the payments we make to you as wholesale sales.
United States Sales Tax
Some sales in certain states may be subject to sales tax. Sales of physical products shipped to residents in California and sales of digital products, subscriptions, and physical products will 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.
Sales Tax Exemptions
If a U.S. customer is buying on behalf of an organization that is exempt from paying state and local sales taxes, FastSpring can refund the sales tax after the purchase has been completed. Alternatively, upon validating a specific customer's exempt status, FastSpring Support can create a custom order link for the customer that will prevent sales tax from being included on the initial order.
For sales tax refunds, customers can submit a copy of their tax exemption certificate or other supporting paperwork issued by the state government via questionacharge.com along with their order reference/ID and our support team will refund the sales tax back to the original payment account.
From the time our support team receives a ticket with a tax refund request, it takes 24-48 hours until the refund has been processed and we send a reply to the customer. After that, it can take a few business days for the funds to post back to the customer's payment account.
EU VAT
On January 1, 2015, there were major changes to the VAT (value added tax) in the European Union. Before 2015, VAT was based on the location of the business, but it is now based on the location of the customer. FastSpring detects customer's location via IP address and adds the applicable amount of VAT.
Digital sales, including digital products and subscriptions in the EU, require FastSpring to collect and pay VAT to the appropriate authorities and the VAT rates differ by country. VAT is collected for the following countries: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovenia, Slovak Republic, Spain, Sweden, Turkey, and the United Kingdom.
We do not charge VAT on physical goods to the EU, but customers may pay an import tax when they pick up their product. VAT taxes are reported and paid to the EU by FastSpring. The invoice we provide to you at purchase completion will include the VAT amount as well as the FastSpring VAT ID.
VAT / GST Exemption
Customers that are exempt from paying VAT or GST can prevent tax from being collected on their order by providing their valid VAT ID or GST ID at the time of purchase. For those providing a valid ID, no tax will be collected, and the ID will be included on the invoice we provide upon purchase completion.
VAT / GST Refunds
If a customer neglects or is unable to enter a VAT ID or GST ID at the time of the purchase, instruct the customer to contact us via https://questionacharge.com with the order reference / ID and the valid VAT ID or GST ID. We will issue a refund for the tax that was collected on the order back to the original payment method.
FastSpring VAT Number for the EU
Many companies have a VAT that begins with the two letter language ISO 639-1 code where their company is located. The FastSpring VAT number is EU826012240. It begins with EU because FastSpring is located in the United States, not in a European Union member state.
The FastSpring VAT number cannot be verified by the usual VAT validation services and must be verified by the Mutual Assistance Office (a sub-department of the local VAT collection agency) in each EU country from a database available to those offices.
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.
Businesses making digital purchases can be exempted from GST collection by providing their valid GST ID at the time of purchase. For those providing a GST ID, no GST will be charged and the GST ID will be included 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. The former FastSpring tax ID for Sales and Service Tax was NTT0571USASR030. FastSpring collects Goods and Services Tax (GST) for sales of digital products and subscriptions made to customers located in India. FastSpring changed from collecting Sales and Service Tax to GST on July 1, 2017.
Businesses making digital purchases can be exempted from GST collection by providing their valid GST ID at the time of purchase. For those providing a GST ID, no GST will be charged, and the GST ID will be included 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 will merely be assessed and added on 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 is 122-060-896. FastSpring collects GST for sales of digital products and subscriptions made to customers located in New Zealand.
Businesses making digital purchases can be exempted from GST collection by providing their valid GST ID at the time of purchase. For those providing a GST ID, no GST will be charged, and the GST ID will be included 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 will have VAT.
Norwegian businesses making digital purchases can be exempted from VAT collection by providing their valid VAT ID at the time of purchase. For those providing a VAT ID, no VAT will be charged, and the VAT ID will be included 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 the FastSpring VAT number for Norway, contact VOES.norway@skatteetaten.no or info@voesnorway.com.
Singapore GST
The FastSpring GST registration number for Singapore is M90373079G. FastSpring collects GST for sales of digital goods and services 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.
Businesses making digital purchases can be exempted from VAT collection by providing their valid VAT ID at the time of purchase. For those providing a VAT ID, no VAT will be charged, and the VAT ID will be included 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 of digital products and subscriptions made to customers located in Switzerland will have 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.
Businesses making digital purchases can be exempted from VAT collection by providing their valid VAT ID at the time of purchase. For those providing a VAT ID, no VAT will be charged, and the VAT ID will be included on the invoice we provide at purchase completion.
Turkey
As of June 1, 2020 FastSpring collects applicable taxes for purchases in Turkey.