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.

For countries in the list that show B2B & B2C, B2B customers are responsible for reclaiming indirect tax back on their tax returns.

* 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.