Global Taxes + Financial Services

We share only the information that is required by law to be shared for the purposes of managing purchase-related taxes on SaaS, software, and digital goods, including the filing of tax returns in appropriate jurisdictions. No individual customer information is shared with any government entity.

Examples of information we are required to share:

Total amount of taxable transactions
Total tax collected and remitted
Volume of transactions
Types of products sold
Tax rate used (standard, reduced, etc.)
Reverse charge sales

The U.S. Supreme Court recently ruled that internet retailers, regardless if they sell physical or digital goods can be required to collect sales taxes in states — despite having no physical presence. Sales tax is sourced based on the item sold. For example services are sourced to where the service is performed, while goods are sourced to where they are used (usually where the end-user is located). That means companies are responsible for managing the various sales taxes collected in 45 different U.S. states. Learn more about the Wayfair ruling.

FastSpring collects and files sales tax in every state with a sales tax regime, 45 in total. Excludes Alaska, Delaware, Montana, New Hampshire, and Oregon.

Most SaaS and software companies using Stripe pay for a variety of extra services to do everything FastSpring offers in a single service. When you use Stripe, you can process payments and receive money to your bank account. With a merchant of record (like FastSpring), processing payments and receiving money is only a small part of the service. FastSpring also provides a fully-built checkout tool, subscription management, compliance, fraud monitoring, and we collect and remit all purchase-related taxes ( sales tax, VAT, and GST, etc.) on your behalf.

It’s the agent vs. principle. Stripe is only a transaction facilitator, they assist and connect a buyer and seller directly to complete the transaction. All liability and responsibility remains with the Seller. FastSpring is a principle and steps into the shoes of a seller, selling to the buyer. Thus taking on all liability and responsibility of the “selling party”

A value-added tax (VAT) is an indirect or transaction tax levied on the sale of goods and services around the world. The purpose of which is to tax the end user on the consumption. It is calculated as a % of the supply. A consumption tax can have many names; VAT, GST (goods & service tax), sales tax, etc. but work similarly. Its the sellers burden to account and assess any tax that is due on the transaction. works very similarly to sales tax. For purchases of SaaS, software, and digital goods, VAT is calculated based on the location of the buyer making a purchase. VAT rates vary within the EU, and each EU country has the authority to determine its own VAT rates. VAT rates can and do change as new laws and regulations are passed.

Over 150 countries have some type of consumption tax. A Seller is responsible for understanding of “selling” into all of these countries.

Value-added tax (VAT) is currently assessed by over 50 countries around the globe. The rules governing where a product is taxable vary widely based on the product type, location of the buyer, and other factors, which can change over time. We maintain a full list of countries that apply some type of VAT to online purchases.

There are a variety of situations where a purchase may be VAT exempt. For example, non-profit buyers can often make purchases without having to pay a VAT tax. Some categories of products are also VAT-exempt in certain jurisdictions. FastSpring’s platform supports these and many other VAT-exempt situations. We also routinely update our platform to add support for tax-exempt purchases as the rules change in various locations.

FastSpring supports tax-exempt purchases for customers around the world. Are you a reseller? An international business? A tax exempt organization? Our checkout tools platform seamlessly manage all these situations and more.

We manage indirect taxes purchase-related sales taxes (including VAT, GST, and similar taxes) for SaaS, downloadable software, and digital goods purchased by customers anywhere in the world.

During onboarding, our compliance team will work with you to ensure all your transactions are tax compliant — including potential zero-rate transactions.

Discover how FastSpring can transform your business. Start a free trial or schedule a demo to explore our global payments platform, subscription management, and tax compliance solutions.

Results from fastspring.com

Never Stress About Sales Tax and VAT

We’ll Collect and Remit Taxes
on Your Behalf

Instantly Become Tax Compliant

We File 1,000+ Tax Returns —
So You Don’t Have To

Frequent Asked Questions

FastSpring is more than taxes. We’re your merchant of record.

Ready to get started?

Get more than a payment gateway, right out of the gate. Go farther faster with FastSpring.