About VAT and Sales Tax

Last modified November 13, 2017

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. Sales of physical products, such as a backup CD, may be subject to California sales tax for California residents.

FastSpring is a reseller. A side effect of this is that FastSpring becomes the merchant/vendor/retailer of record for the sale of your product. 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.

 

Where Does FastSpring Collect Taxes?
 

US 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, Indiana, Maine, Nebraska, South Dakota, Texas, and Wyoming will incur sales tax. FastSpring complies with the rules and regulations in each state.

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

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
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
Germany DE 19 VAT EU826012240 Enter Valid VAT ID Umsatzsteuer/Mehrwertsteuer Yes (Recurring and Non-Recurring) Digital/Service
Estonia EE 20 VAT EU826012240 Enter Valid VAT ID Käibemaks 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
Spain ES 21 VAT EU826012240 Enter Valid VAT ID Impuesto sobre el Valor Añadido (IVA) 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
Croatia HR 25 VAT EU826012240 Enter Valid VAT ID Porez na dodanu vrijednost (PDV) 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
Cyprus CY 19 VAT EU826012240 Enter Valid VAT ID Value Added Tax 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
Hungary HU 27 VAT EU826012240 Enter Valid VAT ID Általános forgalmi adó 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
Austria AT 20 VAT EU826012240 Enter Valid VAT ID Umsatzsteuer Yes (Recurring and Non-Recurring) Digital/Service
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
Slovenia SI 22 VAT EU826012240 Enter Valid VAT ID Davek na dodano vrednost (DDV) 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
Finland FI 24 VAT EU826012240 Enter Valid VAT ID Arvonlisävero 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
United Kingdom GB 20 VAT EU826012240 Enter Valid VAT ID Value Added Tax 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
South Korea KR 10 VAT 754-80-00583 Enter Valid VAT ID Boo-ga-ga-chi-se Yes (Recurring and Non-Recurring) Digital/Service
South Africa ZA 14 VAT Forthcoming None
Value Added Tax Yes (Recurring only) None
New Zealand NZ 15 GST 122-060-896 Enter Valid GST ID
Goods and Services Tax 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
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.
Switzerland CH 8 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

Verifying FastSpring's Local Tax Registration


FastSpring's 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.
 

Switzerland VAT Number CHE-407.203.569 MWST

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. Our VAT Number is CHE-407.203.569 MWST for Switzerland.


Norway VAT Number 2017474

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 made to customers located in Norway will have VAT. Our VAT Number is 2017474 for Norway.

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.


Japan NTA Number 00062

For purchases made by customers in Japan (including businesses), FastSpring is obligated to collect and remit Japan's Consumption Tax (currently at a rate of 8%). FastSpring is registered with Japan's National Tax Authority (NTA) and appears on the NTA's list of registered companies with registration number 00062.



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.