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Sales tax & VAT for card payments reference

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Sales tax & VAT for card payments reference

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.

Wilberforce Seguton
Wilberforce Seguton
Customer Support & Enterprise Sales, Bunifu Framework

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