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Which countries does Paddle charge sales tax or VAT for?

When a customer purchases a product via Paddle, the country from which they are making the purchase may charge VAT. Paddle is registered and able to handle VAT payments for the regions listed below. The listed rates are for the โ€œStandard Digital Goodsโ€ tax category.

Jurisdiction Tax Rate, % Indirect Tax B2B/B2C Date Introduced
Australia 10% GST B2C 01/07/2017
Bahrain 5% VAT B2C 14/04/2021
Chile 19% VAT B2C 21/01/2021
India 18% GST B2C 01/07/2017
Indonesia 10% VAT B2B & B2C 05/07/2021
Japan 10% Consumption Tax B2C 01/10/2015
Malaysia 6% SST B2B & B2C 26/03/2021
Mexico 16% VAT B2B & B2C 10/11/2021
New Zealand 15% GST B2C 01/10/2016
Russia - Previous rate 16.67% VAT B2B & B2C 04/22/2019 - 18/01/2021
Russia 20% VAT B2B & B2C 18/01/2021
Saudi Arabia 15% VAT B2C 12/05/2020
Singapore 7% GST B2C 21/04/2020
South Africa 15% VAT B2B & B2C 01/01/2014
South Korea 10% VAT B2C 01/07/2015
Thailand 7% VAT B2C 07/09/2021
Turkey 18% VAT B2C 01/01/2018
UAE 5% VAT B2C 23/09/2019
Uzbekistan 15% VAT B2C 04/01/2021
Canada _ _ _ _
Alberta 5% Federal GST B2B & B2C 08/08/2021
British Columbia 7% + 5% PST + Federal GST B2B & B2C 05/05/2021
Manitoba 5% Federal GST B2B & B2C 10/07/2021
New Brunswick 15% Federal HST B2B & B2C 10/07/2021
Newfoundland and Labrador 15% Federal HST B2B & B2C 10/07/2021
Northwest Territories 5% Federal GST B2B & B2C 10/07/2021
Nova Scotia 15% Federal HST B2B & B2C 10/07/2021
Nunavut 5% Federal GST B2B & B2C 10/07/2021
Ontario 13% Federal HST B2B & B2C 10/07/2021
Prince Edward Island 15% Federal HST B2B & B2C 10/07/2021
Quebec 9.975% + 5% QST + Federal GST B2C 01/01/2019
Sasketchewan 6% + 5% PST + Federal GST B2C 15/01/2021
Yukon 5% Federal GST B2B & B2C 10/07/2021
EU Countries _ _ _ _
Austria 20% VAT MOSS B2C 01/01/2015
Belarus 20% VAT B2C 01/01/2018
Belgium 21% VAT MOSS B2C 01/01/2015
Bulgaria 20% VAT MOSS B2C 01/01/2015
Croatia 25% VAT MOSS B2C 01/01/2015
Cyprus 19% VAT MOSS B2C 01/01/2015
Czech Republic 21% VAT MOSS B2C 01/01/2015
Denmark 25% VAT MOSS B2C 01/01/2015
Estonia 20% VAT MOSS B2C 01/01/2015
Finland 24% VAT MOSS B2C 01/01/2015
France 20% VAT MOSS B2C 01/01/2015
Germany 19% VAT MOSS B2C 01/01/2015
Germany temporary VAT cut 16% VAT MOSS B2C 01/07/2020 to 31/12/2020
Greece 24% VAT MOSS B2C 01/01/2015
Hungary 27% VAT MOSS B2C 01/01/2015
Iceland 24% VAT B2B & B2C 24/10/2018
Ireland 23% VAT B2C 01/01/2015
Ireland temporary VAT cut 21% VAT B2C 04/09/2020 to 28/02/2021
Italy 22% VAT MOSS B2C 01/01/2015
Latvia 21% VAT MOSS B2C 01/01/2015
Liechtenstein 7.7% VAT B2B & B2C 21/01/2021
Lithuania 21% VAT MOSS B2C 01/01/2015
Luxembourg 17% VAT MOSS B2C 01/01/2015
Malta 18% VAT MOSS B2C 01/01/2015
Moldova 20% GST B2C 02/06/2020
Netherlands 21% VAT MOSS B2C 01/01/2015
Norway 25% VAT B2C 01/07/2011
Poland 23% VAT MOSS B2C 01/01/2015
Portugal 23% VAT MOSS B2C 01/01/2015
Romania 19% VAT MOSS B2C 01/01/2015
Slovak Republic 20% VAT MOSS B2C 01/01/2015
Slovenia 22% VAT MOSS B2C 01/01/2015
Spain 21% VAT MOSS B2C 01/01/2015
Sweden 25% VAT MOSS B2C 01/01/2015
Switzerland 7.7% VAT B2B & B2C 01/01/2010
United Kingdom 20% VAT/ VAT MOSS B2B & B2C 01/01/2015
United States* _ _ _ _
Alabama 4% Sales Tax B2B & B2C 01/10/2018
Arizona 5.6% Sales Tax B2B & B2C 19/12/2019
Arkansas 6.5% Sales Tax B2C 19/12/2019
Colorado 2.9% Sales Tax B2B & B2C 31/05/2019
Connecticut 6.35% Sales Tax B2B & B2C 19/12/2019
Denver - Previous rate 4.31% Sales Tax B2B & B2C 01/06/2019 - 31/12/2020
Denver 4.81% Sales Tax B2B & B2C 01/01/2021
District of Columbia 6% Sales Tax B2B & B2C 19/12/2019
Hawaii 4% Sales Tax B2B & B2C 19/12/2019
Idaho 6% Sales Tax B2B & B2C 20/12/2019
Illinois 6.25% Sales Tax B2C 19/12/2019
Indiana 7% Sales Tax B2B & B2C 19/12/2019
Iowa 6% Sales Tax B2B & B2C 19/12/2019
Kansas 6.5% Sales Tax B2B & B2C 19/12/2019
Kentucky 6% Sales Tax B2B & B2C 19/12/2019
Louisiana 4.45% Sales Tax B2B & B2C 19/12/2019
Maine 5.5% Sales Tax B2B & B2C 18/12/2019
Maryland 6% Sales Tax B2B & B2C 27/05/2021
Massachusetts 6.25% Sales Tax B2B & B2C 01/10/2017
Michigan 6% Sales Tax B2C 19/12/2019
Minnesota 6.88% Sales Tax B2B & B2C 31/10/2018
Mississippi 7% Sales Tax B2B & B2C 29/09/2020
Nebraska 5.5% Sales Tax B2B & B2C 18/12/2019
New Jersey 6.63% Sales Tax B2B & B2C 01/11/2018
New Mexico 5.13% Sales Tax B2B & B2C 19/12/2019
New York 4% Sales Tax B2B & B2C 21/06/2018
North Carolina 4.75% Sales Tax B2B & B2C 01/11/2018
North Dakota 5% Sales Tax B2C 10/11/2020
Ohio 5.75% Sales Tax B2B & B2C 01/01/2019
Pennsylvania 6% Sales Tax B2B & B2C 01/07/2019
Rhode Island 7% Sales Tax B2B & B2C 19/12/2019
South Carolina 6% Sales Tax B2B & B2C 19/12/2019
South Dakota 4.5% Sales Tax B2B & B2C 18/12/2019
Tennessee 7% Sales Tax B2B & B2C 19/12/2019
Texas 8.00% Sales Tax B2B & B2C 21/06/2018
Utah 4.85% Sales Tax B2B & B2C 19/12/2019
Vermont 6% Sales Tax B2C 19/12/2019
Washington 6.5% Sales Tax B2B & B2C 01/10/2018
West Virginia 6% Sales Tax B2B & B2C 18/12/2019
Wisconsin 5% Sales Tax B2B & B2C 18/12/2019
Wyoming 4% Sales Tax B2B & B2C 18/12/2019

* Please note that 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, and depending on local municipalities, the total tax rate can be higher than the stated rate. Currently, digital products can be characterized as either: electronically downloaded software, SaaS or digital goods, although you may see these referred to as tangible personal property, services, or intangible property in official documentation. Due to this situation, some states charge the sales tax for all categories, while others charge sales tax for some of the categories, or not charge it at all. Hence why if you sell products from multiple categories, you may notice that customers from the same state may receive a bill with or without tax.

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