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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 following countries.

Jurisdiction Tax Rate, % Indirect Tax B2B/B2C Date Introduced
Australia 10% GST B2C 01/07/2017
Belarus 20% VAT B2C 01/01/2018
India 18% GST B2C 01/07/2017
Japan 8% Consumption Tax B2C 01/10/2015
New Zealand 15% GST B2C 01/10/2016
Norway 25% VAT B2C 01/07/2011
Russia 15.25% VAT B2C 01/01/2017
South Africa 15% VAT B2B & B2C 01/01/2014
South Korea 10% VAT B2B & B2C 01/07/2015
Switzerland 7.7% VAT B2B & B2C 01/01/2010
Turkey 18% VAT B2C 01/01/2018
UAE 5% VAT B2C 23/09/2019
Canada _ _ _ _
Quebec 9.975% QST B2C 01/01/2019
EU Countries _ _ _ _
Austria 20% VAT MOSS B2C 01/01/2015
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
Greece 24% VAT MOSS B2C 01/01/2015
Hungary 27% VAT MOSS B2C 01/01/2015
Ireland 23% VAT / VAT MOSS B2C 01/01/2015
Italy 22% VAT MOSS B2C 01/01/2015
Latvia 21% VAT MOSS B2C 01/01/2015
Lithuania 21% VAT MOSS B2C 01/01/2015
Luxembourg 17% VAT MOSS B2C 01/01/2015
Malta 18% VAT MOSS B2C 01/01/2015
Netherlands 21% VAT MOSS B2C 01/01/2015
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
United Kingdom 20% VAT/ VAT MOSS B2C 01/01/2015
United States* _ _ _ _
Alabama 4% Sales Tax B2B & B2C Coming Soon
Arizona 5.6% Sales Tax B2B & B2C Coming Soon
Arkansas 6.5% Sales Tax B2B & B2C Coming Soon
California 7.25% Sales Tax B2B & B2C Coming Soon
Colorado 2.9% Sales Tax B2B & B2C 31/05/2019
Connecticut 6.35% Sales Tax B2B & B2C Coming Soon
Denver 4.31% Sales Tax B2B & B2C Coming Soon
District of Columbia 6% Sales Tax B2B & B2C Coming Soon
Florida 6% Sales Tax B2B & B2C Coming Soon
Georgia 4% Sales Tax B2B & B2C Coming Soon
Hawaii 4% Sales Tax B2B & B2C Coming Soon
Idaho 6% Sales Tax B2B & B2C Coming Soon
Illinois 6.25% Sales Tax B2B & B2C Coming Soon
Indiana 7% Sales Tax B2B & B2C Coming Soon
Iowa 6% Sales Tax B2B & B2C Coming Soon
Kansas 6.5% Sales Tax B2B & B2C Coming Soon
Kentucky 6% Sales Tax B2B & B2C Coming Soon
Louisiana 4.45% Sales Tax B2B & B2C Coming Soon
Maine 5.5% Sales Tax B2B & B2C Coming Soon
Maryland 6% Sales Tax B2B & B2C Coming Soon
Massachusetts 6.25% Sales Tax B2B & B2C 01/10/2017
Michigan 6% Sales Tax B2B & B2C Coming Soon
Minnesota 6.88% Sales Tax B2B & B2C 31/10/2018
Mississippi 7% Sales Tax B2B & B2C Coming Soon
Missouri 4.23% Sales Tax B2B & B2C Coming Soon
Nebraska 5.5% Sales Tax B2B & B2C Coming Soon
Nevada 6.85% Sales Tax B2B & B2C Coming Soon
New Jersey 6.63% Sales Tax B2B & B2C 01/11/2018
New Mexico 5.13% Sales Tax B2B & B2C Coming Soon
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 B2B & B2C Coming Soon
Ohio 5.75% Sales Tax B2B & B2C 01/01/2019
Oklahoma 4.5% Sales Tax B2B & B2C Coming Soon
Pennsylvania 6% Sales Tax B2B & B2C 01/07/2019
Rhode Island 7% Sales Tax B2B & B2C Coming Soon
South Carolina 6% Sales Tax B2B & B2C Coming Soon
South Dakota 4.5% Sales Tax B2B & B2C Coming Soon
Tennessee 7% Sales Tax B2B & B2C Coming Soon
Texas 6.25% Sales Tax B2B & B2C 21/06/2018
Utah 4.85% Sales Tax B2B & B2C Coming Soon
Vermont 6% Sales Tax B2B & B2C Coming Soon
Virginia 5.3% Sales Tax B2B & B2C Coming Soon
Washington 6.5% Sales Tax B2B & B2C 01/10/2018
West Virginia 6% Sales Tax B2B & B2C Coming Soon
Wisconsin 5% Sales Tax B2B & B2C Coming Soon
Wyoming 4% Sales Tax B2B & B2C Coming Soon

* It’s important to understand 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 state. Currently, digital products can be characterized as either Electronically downloaded software, SAAS and digital goods, although you may rather meet terms tangible personal property, services, or intangible property in official documentation. Due to this we find ourselves in the situation where some states charge the sales tax for all categories, while others charge sales tax for some of the categories or do not charge it at all. That’s 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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