We recently enabled automated purchases via direct card payments. This move caters for customers who are not able to purchase directly via the existing automated payments i.e. PayPal and via Bitcoin.
Note: Payments made via PayPal and GoUrl Bitcoin gateway are not subject to taxation at the moment.
The introduction of payment via debit card or credit card increases inclusivity and customers no longer have to wait for their transactions to be processed manually as it was before.
We work with Paddle payment gateway and as a result of this sales tax or VAT shall be applied on transactions depending on the country you are making your purchase from. Below is a list of countries which charge sales tax or VAT and their respective amounts.
| 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 | 10% | Consumption Tax | B2C | 01/10/2015 |
| New Zealand | 15% | GST | B2C | 01/10/2016 |
| Norway | 25% | VAT | B2C | 01/07/2011 |
| Russia | 16.67% | VAT | B2B & B2C | 04/22/2019 |
| 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 |
| 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 |
| 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 | 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 |
Something to note is that Sales Tax and VAT vary from country to country and there is no one way of looking at it. Learn more here.
Sales tax will, therefore, be added on to the product cost and as a result, the final amount on your checkout will change and will include sales tax / VAT should your country or jurisdiction charges VAT/sales tax.
Paddle will withhold the sales tax charged and will remit on behalf of Bunifu the exact tax charged will be reflected in the transaction details if applicable.
Leave A Comment