About VAT and Sales Tax

Last modified November 15, 2018

This article applies to Contextual Commerce. (Looking for Classic Commerce documentation?)

FastSpring takes care of the collection of taxes on all purchases, and you do not have to do anything relating to sales tax or VAT (value added tax). Legally speaking, FastSpring is considered the merchant of record, so we follow all laws and regulations as if the sale were made from California in the United States.

However, most sales in the EU and certain other geographic locations require us to collect and pay VAT to the appropriate authorities. VAT and tax rates differ by country, and your end customers in the EU (and some of the other locations) can enter their VAT ID as part of the checkout process if they are exempt from payment of the tax.

FastSpring is a reseller. A side effect of this is that FastSpring becomes the merchant and seller of record for the sale of your products. We collect all applicable taxes from the customers, and we report and pay those tax to the appropriate taxation authorities. You do not need details of this reporting. The only thing that you need to do is record the payments we make to you as wholesale sales. 

 

Where Does FastSpring Collect Taxes?
 

U.S. Sales Tax

Some sales in certain states may be subject to sales tax. Sales of physical products shipped to residents in California, and sales of digital products, subscriptions, and physical products for residents in Alabama, Arizona, Indiana, Maine, Massachusetts, Nebraska, Pennsylvania, Rhode Island, South Dakota, Texas and Vermont will incur sales tax. FastSpring complies with the rules and regulations in each state.

Note

For gift purchases, sales tax is calculated based on the location of the recipient rather than the purchaser. Hence, the purchaser must provide the recipient's ZIP code at the time of the order.

Regarding Sales Tax Exemption

If a U.S. customer is buying on behalf of an organization that is exempt from paying state and local sales taxes, FastSpring can refund the sales tax after the purchase has been completed.  At this time, there is no way to prevent the sales tax from being collected on the order initially.

Customers can email a copy of their tax exemption certificate or other supporting paperwork issued by the state government to orders@fastspring.com along with their order reference / order ID, and our support team will refund the sales tax back to the original payment account.

From the time our support team receives a ticket with a tax refund request, it should take no more than 24-48 hours (and probably less) until the refund has been processed and we send a reply to the customer. After that, it can take a few business days for the funds to post back to the customer's payment account.


Taxes on Certain Non-U.S. Transactions


Country
Country Code
Tax Rate %
Tax Class
FastSpring TaxID
Exemption Method (enter ID, submit exemption form, None)

Local Tax Name

Subscriptions

Taxable Products:

Digital/Physical/Service

Australia AU 10 GST ARN 3000 0970 3953
Enter Valid GST ID Goods and Services Tax Yes (Recurring and Non-Recurring)

Digital/Service

For Physical Goods - Buyer pays import Tax

Austria AT 20 VAT EU826012240 Enter Valid VAT ID Umsatzsteuer Yes (Recurring and Non-Recurring) Digital/Service
Belgium BE 21

VAT

EU826012240 Enter Valid VAT ID

Belasting over de toegevoegde waarde (BTW)

Taxe sur la valeur ajoutée (TVA)

Yes (Recurring and Non-Recurring) Digital/Service
Bulgaria BG 20 VAT EU826012240 Enter Valid VAT ID Danak varhu dobavenata stoinost (DDS) Yes (Recurring and Non-Recurring) Digital/Service
Croatia HR 25 VAT EU826012240 Enter Valid VAT ID Porez na dodanu vrijednost (PDV) Yes (Recurring and Non-Recurring) Digital/Service
Cyprus CY 19 VAT EU826012240 Enter Valid VAT ID Value Added Tax Yes (Recurring and Non-Recurring) Digital/Service
Czech Republic CZ 21 VAT EU826012240 Enter Valid VAT ID Dan z pridane hodnoty Yes (Recurring and Non-Recurring) Digital/Service
Denmark DK 25 VAT EU826012240 Enter Valid VAT ID Merværdiafgiftsloven (Momsloven) Yes (Recurring and Non-Recurring) Digital/Service
Estonia EE 20 VAT EU826012240 Enter Valid VAT ID Käibemaks Yes (Recurring and Non-Recurring) Digital/Service
Finland FI 24 VAT EU826012240 Enter Valid VAT ID Arvonlisävero Yes (Recurring and Non-Recurring) Digital/Service
France FR 20 VAT EU826012240 Enter Valid VAT ID Taxe sur la valeur ajoutée (TVA) Yes (Recurring and Non-Recurring) Digital/Service
Germany DE 19 VAT EU826012240 Enter Valid VAT ID Umsatzsteuer/Mehrwertsteuer Yes (Recurring and Non-Recurring) Digital/Service
Greece GR 24 VAT EU826012240 Enter Valid VAT ID Foros prostithemenis aksias (FPA) Yes (Recurring and Non-Recurring) Digital/Service
Hungary HU 27 VAT EU826012240 Enter Valid VAT ID Általános forgalmi adó Yes (Recurring and Non-Recurring) Digital/Service
India IN 18 Sales and Service Tax 9917USA29028OS1 Enter Valid GST ID

Goods and Services Tax (GST)

NOTE: We moved India from Sales and Service Tax to GST on July 1st, 2017.

Yes (Recurring and Non-Recurring) Digital/Service
Ireland IE 23 VAT EU826012240 Enter Valid VAT ID Value Added Tax Yes (Recurring and Non-Recurring) Digital/Service
Italy IT 22 VAT EU826012240 Enter Valid VAT ID Imposta sul valore aggiunto (IVA) Yes (Recurring and Non-Recurring) Digital/Service
Japan JP 08 CT 00062 No reverse charge. No exemption. Shouhizei Yes (Recurring and Non-Recurring) Digital/Service
Latvia LV 21 VAT EU826012240 Enter Valid VAT ID Pievienot?s vert?bas nodoklis (PVN) Yes (Recurring and Non-Recurring) Digital/Service
Lithuania LT 21 VAT EU826012240 Enter Valid VAT ID Pridetines vertes mokestis Yes (Recurring and Non-Recurring) Digital/Service
Luxembourg LU 17 VAT EU826012240 Enter Valid VAT ID Taxe sur la valeur ajoutée (TVA) Yes (Recurring and Non-Recurring) Digital/Service
Malta MT 18 VAT EU826012240 Enter Valid VAT ID It-taxxa fuq il-valur mizjud Yes (Recurring and Non-Recurring) Digital/Service
Netherlands NL 21 VAT EU826012240 Enter Valid VAT ID Belasting over de toegevoegde waarde (BTW) Yes (Recurring and Non-Recurring) Digital/Service
New Zealand NZ 15 GST 122-060-896 Enter Valid GST ID
Goods and Services Tax Yes (Recurring and Non-Recurring) Digital/Service
Norway NO 25 VAT 2017474 Enter Valid VAT ID Merverdiavgift

Yes (Recurring and Non-Recurring)


Digital/Service

NOTE

The 350 NOK threshold only applies to physical goods, for which we do not collect VAT.
Poland PL 23 VAT EU826012240 Enter Valid VAT ID Podatek od towarow i uslug Yes (Recurring and Non-Recurring) Digital/Service
Portugal PT 23 VAT EU826012240 Enter Valid VAT ID Imposto sobre o valor acrescentado (IVA) Yes (Recurring and Non-Recurring) Digital/Service
Romania RO 19 VAT EU826012240 Enter Valid VAT ID Taxa pe valoarea adaugata Yes (Recurring and Non-Recurring) Digital/Service
Slovak Republic SK 20 VAT EU826012240 Enter Valid VAT ID Da? z pridanej hodnoty (DPH) Yes (Recurring and Non-Recurring) Digital/Service
Slovenia SI 22 VAT EU826012240 Enter Valid VAT ID Davek na dodano vrednost (DDV) Yes (Recurring and Non-Recurring) Digital/Service
South Africa ZA 14 VAT Forthcoming None
Value Added Tax Yes (Recurring only) None
South Korea KR 10 VAT 754-80-00583 Enter Valid VAT ID Boo-ga-ga-chi-se Yes (Recurring and Non-Recurring) Digital/Service
Spain ES 21 VAT EU826012240 Enter Valid VAT ID Impuesto sobre el Valor Añadido (IVA) Yes (Recurring and Non-Recurring) Digital/Service
Sweden SE 25 VAT EU826012240 Enter Valid VAT ID Mervärdesskatt (Moms) Yes (Recurring and Non-Recurring) Digital/Service
Switzerland CH 7.7 VAT CHE-407.203.569 MWST None

Mehrwertsteuer (MWST)

Taxe sur la valeur ajoutée (TVA)

Imposta sul valore aggiunto (IVA)

Yes (Recurring and Non-Recurring) Digital/Service
Taiwan TW 5 VAT 42528194 Enter Valid VAT ID Value Added Tax Yes (Recurring and Non-Recurring) Digital/Service
United Kingdom GB 20 VAT EU826012240 Enter Valid VAT ID Value Added Tax Yes (Recurring and Non-Recurring) Digital/Service

VAT and GST Exemption

Customers that are exempt from paying VAT or GST can prevent tax from being collected on their order by providing their valid VAT ID or GST ID at the time of purchase. For those providing a valid ID, no tax will be collected, and the ID will be included on the invoice we provide upon purchase completion.

VAT / GST Refunds

In case a customer neglects or is unable to enter a VAT ID or GST ID at the time of the purchase, please instruct the customer to email us at orders@fastspring.com with the order reference / ID and the valid VAT ID or GST ID. Our buyer support team will promptly issue a refund for the tax that was collected on the order, back to the original payment method.

Verifying FastSpring's Local Tax Registration


FastSpring's EU VAT Number EU826012240

Many companies have a VAT that begins with the two letter language ISO 639-1 code indicating where their company is located. FastSpring's VAT number is EU826012240. The number begins with "EU" because FastSpring is located in the United States, not in a European Union member state.

Our VAT number cannot be verified by the usual VAT validation services, but would have to be verified by the Mutual Assistance Office (a sub-department of the local VAT collection agency) in each EU country from a database available to those offices.


Australia Goods and Services Tax

FastSpring collects Goods and Services Tax (GST) for sales of digital products and subscriptions made to customers located in Australia.

Australia GST Exemption

Businesses making digital purchases can be exempted from GST collection by providing their valid GST ID at the time of purchase. For those providing a GST ID, no GST will be charged, and the GST ID will be included on the invoice we provide at purchase completion.

FastSpring's Tax ID for Australia

Our tax ID for Australia is ARN 3000 0970 3953.


India Goods and Services Tax

FastSpring collects Goods and Services Tax (GST) for sales of digital products and subscriptions made to customers located in India.

(Note:  We changed from collecting Sales and Service Tax to GST on July 1, 2017.)

India GST Exemption

Businesses making digital purchases can be exempted from GST collection by providing their valid GST ID at the time of purchase. For those providing a GST ID, no GST will be charged, and the GST ID will be included on the invoice we provide at purchase completion.

FastSpring's Goods and Services Tax Number for India

Our tax ID for India is 9917USA29028OS1.

(Note:  Our tax ID for Sales and Service Tax was NTT0571USASR030.)


Japan's Consumption Tax

On October 1, 2015, an amendment to Japan’s Consumption Tax Act took effect for all non-resident or off-shore sellers of digital products and services to consumers in Japan. As your merchant- and seller-of-record, FastSpring has implemented changes to comply with this legislation. We began charging, collecting and remitting the new 8% consumption tax in Japan for off-shore sales of digital products and subscriptions to Japanese consumers.  This new tax rate will merely be assessed and added on to the total product amount. 

FastSpring's NTA Number for Japan

FastSpring is required to collect and remit Japan's Consumption Tax to Japan's National Tax Authority (NTA). Our NTA registration number for Japan is 00062.


New Zealand GST

FastSpring collects GST for sales of digital products and subscriptions made to customers located in New Zealand.

New Zealand GST Exemption

Businesses making digital purchases can be exempted from GST collection by providing their valid GST ID at the time of purchase. For those providing a GST ID, no GST will be charged, and the GST ID will be included on the invoice we provide at purchase completion.

FastSpring's GST Number for New Zealand

Our IRD Number for New Zealand is is 122-060-896.


Norway VAT

When a company's yearly revenue in Norway exceeds a certain threshold, that company is required by law to collect and pay VAT in Norway. FastSpring has exceeded this minimum threshold, so sales of digital products and subscriptions made to customers located in Norway will have VAT.

Norwegian businesses making digital purchases can be exempted from VAT collection by providing their valid VAT ID at the time of purchase. For those providing a VAT ID, no VAT will be charged, and the VAT ID will be included on the invoice we provide at purchase completion.

FastSpring's VAT Number for Norway

Our VAT number for Norway is 2017474.

Verification of VAT 2017474

Companies such as FastSpring, that are registered in the simplified VAT register VOES Norway, are not listed in the online Registry. If you need verification of FastSpring's VAT number for Norway, you can contact VOES.norway@skatteetaten.no or info@voesnorway.com


South Africa VAT

FastSpring collects VAT for sales of recurring subscriptions made to customers located in South Africa. There is no way to be exempt from VAT in South Africa for these sales.

FastSpring's VAT Number for South Africa

Our VAT number for South Africa is pending.


South Korea VAT

FastSpring collects VAT for sales of digital products and subscriptions made to customers located in South Korea.

South Korea VAT Exemption

Businesses making digital purchases can be exempted from VAT collection by providing their valid VAT ID at the time of purchase. For those providing a VAT ID, no VAT will be charged, and the VAT ID will be included on the invoice we provide at purchase completion.

FastSpring's VAT Number for South Korea

Our VAT number for South Korea is 754-80-00583.


Switzerland VAT

When a company's yearly revenue in Switzerland exceeds a certain threshold, that company is required by law to collect and pay VAT in Switzerland. FastSpring has exceeded this minimum threshold, so sales made to customers located in Switzerland will have VAT.  There is no way to be exempt from VAT in Switzerland for these sales.

FastSpring's VAT Number for Switzerland

Our VAT Number for Switzerland is CHE-407.203.569 MWST.


Taiwan VAT

FastSpring collects VAT for sales of digital products and subscriptions made to customers located in Taiwan.

Taiwan VAT Exemption

Businesses making digital purchases can be exempted from VAT collection by providing their valid VAT ID at the time of purchase. For those providing a VAT ID, no VAT will be charged, and the VAT ID will be included on the invoice we provide at purchase completion.

FastSpring's VAT Number for Taiwan

Our VAT number for Taiwan is 42528194.



Your Personal or Company Accounting and Taxes

The correct way to account for sales that go through FastSpring is to record each payment we send you as "Wholesale Sales." It is legally the same scenario as if you made widgets, sent them to Wal-mart to sell, and they pay you wholesale. You do not record the total sales Wal-mart made or record Wal-mart's profit margin as an expense. Instead, you would simply record the money Wal-mart sent you as "wholesale sales."

Your accounting and taxes for the sales through FastSpring should be done the same way. From a tax standpoint, the only thing you need to do is go to Manage Account » Account Summary.

Click on your Balance, which is shown in blue, to see your Completed Payments. Record the values as Wholesale Sales in your accounting system. 

Although not required by FastSpring, some clients, especially those located in Germany, open a support ticket for each payment and attach an invoice, showing the amount of their wholesale sales. A sample invoice is shown below.


You can also download a sample invoice in the XLS (Excel spreadsheet) format from the following link:  Generic Invoice.xls


EU Changes in 2015

On January 1, 2015 major changes were made to the VAT (value added tax) in the European Union. Before 2015, VAT was based on the location of the business. It is now based on the location of the customer. FastSpring detects each customer's location via IP address. which is the suggested method, and adds the correct amount of VAT, if applicable. You do not need to do anything; we have you covered.