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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 |
| India | 18% | GST | B2C | 01/07/2017 |
| Japan | 10% | Consumption Tax | B2C | 01/10/2015 |
| New Zealand | 15% | GST | B2C | 01/10/2016 |
| Russia | 16.67% | VAT | B2B & B2C | 04/22/2019 |
| Singapore | 7% | GST | B2C | 21/04/2020 |
| South Africa | 15% | VAT | B2B & B2C | 01/01/2014 |
| South Korea | 10% | VAT | B2C | 01/07/2015 |
| 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 |
| 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 to 30/06/2020 |
| 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 |
| 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 |
| Moldova | 16.67% | 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 | B2C | 01/01/2015 |
| United States* | _ | _ | _ | _ |
| Alabama | 4% | Sales Tax | B2B & B2C | Coming Soon |
| 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 | 4.31% | Sales Tax | B2B & B2C | Coming Soon |
| 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 |
| 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 |
| 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 |
| 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 | 6.25% | 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 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.