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Which countries does Paddle charge sales tax or VAT for?

When a customer purchases a product via Paddle, the country from which they are making the purchase may charge sales tax or VAT. Paddle is registered and able to handle sales tax and 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.

JurisdictionTax Rate, %Indirect TaxB2B/B2C
Armenia20%VATB2C
Australia10%GSTB2C
Bangladesh
15%VATB2C
Bahamas10%VATB2B & B2C
Bahrain10%VATB2C
Cameroon19.25%VATB2B & B2C
Chile19%VATB2C
Colombia19%VATB2C
Curaçao
6%STB2C
Egypt14%VATB2C
Georgia18%VATB2C
Ghana15%VATB2C
Iceland24%VATB2B & B2C
India18%GSTB2C
Indonesia11%VATB2B & B2C
Isle of Man20%VATB2B & B2C
Japan10%Consumption TaxB2B & B2C
Kazakhstan12%VATB2C
Kenya16%VATB2B & B2C
Liechtenstein8.1%VATB2B & B2C
Malaysia8%SSTB2B & B2C
Mexico16%VATB2B & B2C
Moldova20%VATB2C
New Zealand15%GSTB2C
Nigeria7.5%VATB2B & B2C
Norway25%VATB2C
Oman
5%
VAT
B2B & B2C
Puerto Rico11.5%SUTB2C
Puerto Rico4%SUTB2B
Saudi Arabia15%VATB2C
Singapore9%GSTB2C
South Africa15%VATB2B & B2C
South Korea10%VATB2C
Switzerland8.1%VATB2B & B2C
Taiwan5%VATB2C
Tanzania18%VATB2C
Thailand7%VATB2C
Turkey20%VATB2C
United Arab Emirates5%VATB2C
Uganda18%VATB2C
Ukraine20%VATB2C
United Kingdom
20%
VAT

B2B & B2C

Uruguay22%VATB2B & B2C
Uzbekistan12%VATB2C
Vietnam11.11% / 17.65%
FCTB2B & B2C
Canada___
Alberta5%Federal GSTB2C
British Columbia7% + 5%PST + Federal GSTB2B & B2C
Manitoba7% + 5%
RST + Federal GST
B2C
New Brunswick15%Federal HSTB2C
Newfoundland and Labrador15%Federal HSTB2C
Northwest Territories5%Federal GSTB2C
Nova Scotia15%Federal HSTB2C
Nunavut5%Federal GSTB2C
Ontario13%Federal HSTB2C
Prince Edward Island15%Federal HSTB2C
Quebec9.975% + 5%QST + Federal GSTB2C
Saskatchewan6% + 5%PST + Federal GSTB2C
Yukon5%Federal GSTB2C
EU Countries___
Austria20%VAT OSSB2C
Belgium21%VAT OSSB2C
Bulgaria20%VAT OSSB2C
Croatia25%VAT OSSB2C
Cyprus19%VAT OSSB2C
Czech Republic21%VAT OSSB2C
Denmark25%VAT OSSB2C
Estonia22%VAT OSSB2C
Finland24%VAT OSSB2C
France20%VAT OSSB2C
Germany19%VAT OSSB2C
Greece24%VAT OSSB2C
Hungary27%VAT OSSB2C
Ireland23%VAT OSSB2C
Italy22%VAT OSSB2C
Latvia21%VAT OSSB2C
Lithuania21%VAT OSSB2C
Luxembourg17%VAT OSSB2C
Malta18%VAT OSSB2C
Netherlands21%VAT OSSB2C
Poland23%VAT OSSB2C
Portugal23%VAT OSSB2C
Romania19%VAT OSSB2C
Slovak Republic20%VAT OSSB2C
Slovenia22%VAT OSSB2C
Spain21%VAT OSSB2C
Sweden25%VAT OSSB2C


Please note that US 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. The rate of sales tax can also fluctuate within states and is dependent on local municipalities. The landscape of US sales tax is complex, and continually evolving. Because of this, the US list below does not contain tax rates and is not specific to the Standard Digital Goods category.

United States
Alabama
Arizona
Arkansas
Colorado
Connecticut
Denver
District of Columbia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Nebraska
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Washington
West Virginia
Wisconsin
Wyoming

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