When a customer purchases a product via Paddle, the country from which they are making the purchase may charge sales tax or VAT. Paddle is registered and able to handle sales tax and VAT payments for the regions listed below.
The listed rates are for the “Standard Digital Goods” tax category.
For countries in the list that show B2B & B2C, B2B customers are responsible for reclaiming indirect tax back on their tax returns.
Jurisdiction | Tax Rate, % | Indirect Tax | B2B/B2C |
---|---|---|---|
Armenia | 20% | VAT | B2C |
Australia | 10% | GST | B2C |
Bangladesh | 15% | VAT | B2C |
Bahamas | 10% | VAT | B2B & B2C |
Bahrain | 10% | VAT | B2C |
Bosnia & Herzegovina | 17% | VAT | B2B & B2C |
Cambodia | 10% | VAT | B2C |
Cameroon | 19.25% | VAT | B2B & B2C |
Chile | 19% | VAT | B2C |
Colombia | 19% | VAT | B2C |
Curaçao | 6% | ST | B2C |
Egypt | 14% | VAT | B2C |
Georgia | 18% | VAT | B2C |
Ghana | 15% | VAT | B2C |
Iceland | 24% | VAT | B2B & B2C |
India | 18% | GST | B2C |
Indonesia | 11% | VAT | B2B & B2C |
Isle of Man | 20% | VAT | B2B & B2C |
Japan | 10% | Consumption Tax | B2B & B2C |
Kazakhstan | 12% | VAT | B2C |
Kenya | 16% | VAT | B2B & B2C |
Laos | 10% | VAT | B2C |
Liechtenstein | 8.1% | VAT | B2B & B2C |
Malaysia | 8% | SST | B2B & B2C |
Mexico | 16% | VAT | B2B & B2C |
Moldova | 20% | VAT | B2C |
New Zealand | 15% | GST | B2C |
Nigeria | 7.5% | VAT | B2B & B2C |
Norway | 25% | VAT | B2C |
Oman | 5% | VAT | B2B & B2C |
Puerto Rico | 11.5% | SUT | B2C |
Puerto Rico | 4% | SUT | B2B |
Saudi Arabia | 15% | VAT | B2C |
Singapore | 9% | GST | B2C |
South Africa | 15% | VAT | B2B & B2C |
South Korea | 10% | VAT | B2C |
Switzerland | 8.1% | VAT | B2B & B2C |
Taiwan | 5% | VAT | B2C |
Tanzania | 18% | VAT | B2C |
Thailand | 7% | VAT | B2C |
Turkey | 20% | VAT | B2C |
United Arab Emirates | 5% | VAT | B2C |
Uganda | 18% | VAT | B2C |
Ukraine | 20% | VAT | B2C |
United Kingdom | 20% | VAT | B2B & B2C |
Uruguay | 22% | VAT | B2B & B2C |
Uzbekistan | 12% | VAT | B2C |
Vietnam | 11.11% / 17.65% | FCT | B2B & B2C |
Canada | _ | _ | _ |
Alberta | 5% | Federal GST | B2C |
British Columbia | 7% + 5% | PST + Federal GST | B2B & B2C |
Manitoba | 7% + 5% | RST + Federal GST | B2C |
New Brunswick | 15% | Federal HST | B2C |
Newfoundland and Labrador | 15% | Federal HST | B2C |
Northwest Territories | 5% | Federal GST | B2C |
Nova Scotia | 15% | Federal HST | B2C |
Nunavut | 5% | Federal GST | B2C |
Ontario | 13% | Federal HST | B2C |
Prince Edward Island | 15% | Federal HST | B2C |
Quebec | 9.975% + 5% | QST + Federal GST | B2C |
Saskatchewan | 6% + 5% | PST + Federal GST | B2C |
Yukon | 5% | Federal GST | B2C |
EU Countries | _ | _ | _ |
Austria | 20% | VAT OSS | B2C |
Belgium | 21% | VAT OSS | B2C |
Bulgaria | 20% | VAT OSS | B2C |
Croatia | 25% | VAT OSS | B2C |
Cyprus | 19% | VAT OSS | B2C |
Czech Republic | 21% | VAT OSS | B2C |
Denmark | 25% | VAT OSS | B2C |
Estonia | 22% | VAT OSS | B2C |
Finland | 24% | VAT OSS | B2C |
France | 20% | VAT OSS | B2C |
Germany | 19% | VAT OSS | B2C |
Greece | 24% | VAT OSS | B2C |
Hungary | 27% | VAT OSS | B2C |
Ireland | 23% | VAT OSS | B2C |
Italy | 22% | VAT OSS | B2C |
Latvia | 21% | VAT OSS | B2C |
Lithuania | 21% | VAT OSS | B2C |
Luxembourg | 17% | VAT OSS | B2C |
Malta | 18% | VAT OSS | B2C |
Netherlands | 21% | VAT OSS | B2C |
Poland | 23% | VAT OSS | B2C |
Portugal | 23% | VAT OSS | B2C |
Romania | 19% | VAT OSS | B2C |
Slovak Republic | 20% | VAT OSS | B2C |
Slovenia | 22% | VAT OSS | B2C |
Spain | 21% | VAT OSS | B2C |
Sweden | 25% | VAT OSS | B2C |
Please note that US sales tax laws and regulations are written, passed, and interpreted by states, and there is no unified federal agreement on how to approach the sales tax for digital products. The taxability of digital products varies greatly by, and within, states. The rate of sales tax can also fluctuate within states and is dependent on local municipalities. The landscape of US sales tax is complex, and continually evolving. Because of this, the US list below does not contain tax rates and is not specific to the Standard Digital Goods category.
United States |
---|
Alabama |
Arizona |
Arkansas |
Colorado |
Connecticut |
Denver |
District of Columbia |
Hawaii |
Idaho |
Illinois |
Indiana |
Iowa |
Kansas |
Kentucky |
Louisiana |
Maine |
Maryland |
Massachusetts |
Michigan |
Minnesota |
Mississippi |
Nebraska |
New Jersey |
New Mexico |
New York |
North Carolina |
North Dakota |
Ohio |
Pennsylvania |
Rhode Island |
South Carolina |
South Dakota |
Tennessee |
Texas |
Utah |
Vermont |
Washington |
West Virginia |
Wisconsin |
Wyoming |