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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 regions listed below. The listed rates are for the “Standard Digital Goods” 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 |
| 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 |
| 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 | 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 | 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.