Currencies, Conversions and Taxes
This article describes how currency conversions and taxes impact your products' prices.
All FastSpring Stores have a default or "base" currency. When you create a product, you must specify the price in at least that base currency. Your Store uses this currency as a base for automatic currency conversions.
Although you cannot directly control the base currency for your Store, FastSpring Support can set that for you. The available options for your Store's default currency are as follows:
However, you can control which currencies are available to your customers at the Store level. If you decide to limit the currencies supported by your Store, be sure to include any currencies that you might want to accept only in certain Storefronts (and not others). This is necessary because the Store currency settings also control which currencies are available for product pricing. The currencies you select may also impact the payment methods available to customers; for example, GiroPay is only available when a customer pays in Euros.
To Control which Currencies are Available for All Products and Storefronts in the Store
- From the Settings menu of the FastSpring App, select the Store Settings tab (selected by default) and then click Localization on the left-hand side of the page.
- In the Available Currencies field, clear the checkbox next to each currency that you do not want the Store to support. Select the checkbox next to each currency that you do want the Store to support.
- Here is an alphabetical list of currency codes and their corresponding currencies:
Code Currency AUD Australian Dollars BRL Brazilian Reais CAD Canadian Dollars CHF Swiss Francs CLP Chilean Pesos CNY Chinese Yuan COP Colombian Pesos CZK Czech Korun DKK Danish Kroner EUR Euros GBP British Pounds HKD Hong Kong Dollars INR Indian Rupees JPY Japanese Yen KRW Korean Won MXN Mexican Pesos NZD New Zealand Dollars PLN Polish Zlotys RUB Russian Rubles SEK Swedish Kronor SGD Singapore Dollars USD United States Dollars ZAR South African Rand
- Click at the top right-hand side of the page. Please allow up to ten minutes for Live Storefronts to be updated.
About Product Pricing, VAT and Sales Tax
When you create or edit a product, you have the option to set a price in each currency that is accepted by your Store.
- For prices in US dollars (USD), the price should not include VAT, GST, or sales tax; FastSpring will add tax to the price you enter if necessary. The price you enter should be the net price.
- For prices in currencies other than USD (EUR, GBP, and others), you should enter all prices as either gross prices or net prices; either all products' prices should include VAT and GST, or none of them should. By default, your Store uses gross pricing mode, which means that FastSpring deducts VAT and GST from the non-USD prices you enter here, when applicable. However, upon request, FastSpring Support can switch your Store to use net pricing mode. In that case, FastSpring adds VAT and GST to the non-USD prices you enter here, when applicable.
If the only currency enabled is USD (US dollars), then visitors from all over the world see the price in USD. Applicable VAT and GST are included in the prices shown. That is, the price shown is the USD price you set in the FastSpring App plus applicable VAT or GST (depending on the customer's location). See About VAT and Sales Tax for details.
The price shown in the Storefront depends on the geographic location of the visitor (which is determined by the visitor's IP address). The country and currency selected by default are based on the visitor's location. However, if you set a default country for the Storefront, then the prices automatically appear in the currency of the default country (provided that currency is enabled for your Storefront).
Enabling Automatic Currency Conversion
If your Store has a currency enabled for which you have not specified a price, FastSpring automatically converts the price from the default currency (usually USD) to the currency used by the visitor. For example, suppose EUR is enabled, but the price is provided only in USD. Visitors in Europe will see prices that are converted from USD to EUR. Note that the conversion is performed first and any taxes are added second.
Similarly, if GBP is enabled and you have set the product's price in GBP, visitors in the UK will see the specified GBP price. If GBP is enabled, but you have not set the price in GBP, UK visitors will see a price in GBP that FastSpring has converted from USD.
Automatic Currency Conversion Rules
- If the product has a price defined in the currency used by the customer's country, that price appears on the Storefront. If the selected currency is different than the base currency for your Store (e.g., USD), then FastSpring converts the amount paid by the customer back to your Store's base currency before issuing your payout.
- If the product has no price defined in the customer's currency, currency conversion occurs automatically, and the customer sees and pays the converted price.
- If the currency to convert to (the customer's currency) is one of the major currencies listed here:
- AUD, CAD, CHF, DKK, EUR, GBP, HKD, JPY, NZD, SEK, SGD, USD, ZAR
- ...the system gets the Oanda exchange rate, marks it 3.5% higher to adjust for currency fluctuations, and then converts the price defined in the base currency to the customer's currency using the mark-up rate. If the currency to convert to is not a major currency, the system marks up the Oanda exchange rate 5.5% higher to determine the conversion rate. This same adjustment also applies if you specify the price in a non-USD currency, and FastSpring converts the funds back to your Store's base currency.
The price decoration feature (sometimes called "price beautification") aims to make converted or calculated prices look similar in style to the products' original or base prices. This feature is only supported in gross pricing mode, which is enabled for all new Stores by default.
This feature takes effect when converting USD prices to a non-USD currency - i.e., when you have not defined a product's price in the customer's currency.
Rather than potentially displaying an odd decimal portion resulting from the conversion, if the decimal portion of the converted/calculated amount is different than the decimal portion of the base price, the conversion process rounds up to replace the decimal portion of the converted amount with the decimal portion of the base price.
ExampleFor example, if the calculated amount is 6.77 GBP, but the driving price is USD 9.99, the system rounds up from 6.77 GBP to 6.99 GBP so that the decimal portion (.99) matches.
This decoration is processed at the unit level - not the extended price (price * quantity) nor on the order subtotal. Therefore, the effects of the decoration process become more pronounced when multiple quantities are purchased.
Example continuedTo continue the above example, the price for one unit gets converted from $9.99 to 6.77 GBP and decorated to 6.99 GBP. Then, that unit price of 6.99 GBP is multiplied by the quantity purchased to come up with the extended price.
For a single unit, the difference between 6.77 and 6.99 is just 0.22 GBP, but this conversion is done per unit. Thus, if a customer purchased a quantity of 10, the net effect of price decoration would be 2.20 GBP (i.e., 0.22 * 10).
As with transactions that do not involve price decoration, the net proceeds for transactions with price decoration (including the difference between the base price and the final, calculated price) are paid to you, the seller.