How are VAT and sales tax handled?

FastSpring Handles Taxes

FastSpring takes care of the collection of taxes on all purchases, and you do not have to do anything relating to sales tax, VAT (value added tax), Goods and Services tax (GST), and Japanese Consumption Tax. Technically and legally, FastSpring is considered the vendor of record, so we follow all laws and regulations as if the sale were made from California in the United States. For most sales of digital products, we do not have to collect or pay taxes on your behalf. 

When you sell your products through FastSpring, we are the retailer. We charge all applicable tax from the customer, and we report and pay that tax to the respective government. You do not need details of this reporting. The only thing that you need to do is record the payments we make to you as wholesale sales. 

FastSpring does collect taxes in some circumstances for customers located in the following locations: California, United States, countries that are part of the European Union, India, Japan, New Zealand, Norway, Russia, Switzerland, South Africa, and South Korea.


 

US 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 for residents in Alabama, Indiana, Maine, Nebraska, South Dakota, and Wyoming will incur sales tax. FastSpring complies with the rules and regulations in each state.

 

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 (which is the suggested way) and adds the correct amount of VAT, when applicable. You do not need to do anything; we have you covered.

Digital sales, including digital products and subscriptions in the EU require us to collect and pay VAT to the appropriate authorities and the VAT rates differ by country. VAT is collected for the following countries, which are located in the EU: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovenia, Slovak Republic, Spain, Sweden, 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.

EU VAT Exemption

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.

FastSpring's 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. FastSpring's VAT number is EU826012240; it begins with EU because FastSpring is located in the United States, not in a European Union member state. 

Verification of VAT EU826012240

Our VAT number cannot be verified by the usual VAT validation services, but would have to 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

FastSpring collects Goods and Services Tax (GST) for sales of digital products and subscriptions made to customers located in Australia.

Australia GST Exemption

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.

FastSpring's Tax ID for Australia

Our tax ID for Australia is forthcoming.

 

India Goods and Services Tax

FastSpring collects Goods and Services Tax (GST) for sales of digital products and subscriptions made to customers located in India.

(Note:  We changed from collecting Sales and Service Tax to GST on July 1, 2017.)

India GST Exemption

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.

FastSpring's Goods and Services Tax Number for India

Our tax ID for India is 9917USA29028OS1.

(Note:  Our tax ID for Sales and Service Tax was NTT0571USASR030.)

 

Japan's Consumption Tax

On October 1, 2015, an amendment to Japan’s 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 8% 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. 

FastSpring's NTA Number for Japan

FastSpring is required to collect and remit Japan's Consumption Tax to Japan's National Tax Authority (NTA). Our NTA registration number for Japan is 00062.

 

New Zealand GST

FastSpring collects GST for sales of digital products and subscriptions made to customers located in New Zealand.

New Zealand GST Exemption

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.

FastSpring's GST Number for New Zealand

Our IRD Number for New Zealand is is 122-060-896.

 

Norway VAT

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.

FastSpring's VAT Number for Norway

Our VAT number for Norway is 2017474.

Verification of VAT 2017474

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

 

Switzerland VAT

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.

FastSpring's VAT Number for Switzerland

Our VAT number for Switzerland is CHE-407.203.569 MWST.

 

South Africa VAT

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.

FastSpring's VAT Number for South Africa

Our VAT number for South Africa is pending.

 

South Korea VAT

FastSpring collects VAT for sales of digital products and subscriptions made to customers located in South Korea.

South Korea VAT Exemption

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.

FastSpring's VAT Number for South Korea

Our VAT number for South Korea is 754-80-00583.

 

Taiwan VAT

FastSpring collects VAT for sales of digital products and subscriptions made to customers located in Taiwan.

Taiwan VAT Exemption

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.

FastSpring's VAT Number for Taiwan

Our VAT number for Taiwan is 42528194.

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