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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 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.

JurisdictionTax Rate, %Indirect TaxB2B/B2CDate Introduced
Bahrain - Previous rate5%VATB2C01/03/2019 - 31/12/2021
Indonesia - Previous rate10%VATB2B & B2C10/05/2021 - 11/04/2022
Indonesia11%VATB2B & B2C12/04/2022
Kenya16%VATB2B & B2C02/09/2022
Japan10%Consumption TaxB2B & B2C01/10/2015
Nigeria7.5%VATB2B & B2C18/03/2022
Malaysia6%SSTB2B & B2C01/05/2020
Mexico16%VATB2B & B2C10/11/2021
New Zealand15%GSTB2C01/10/2016
B2B & B2C
Russia - Previous rate16.67%VATB2B & B2C26/01/2017 - 31/12/2018
Russia20%VATB2B & B2C01/01/2019
Saudi Arabia15%VATB2C01/01/2019
Singapore - previous rate7%GSTB2C01/01/2019 to 31/12/2022
South Africa15%VATB2B & B2C01/01/2017
South Korea10%VATB2C01/01/2017
Uzbekistan - previous rate15%VATB2C15/06/2020 to 31/12/2022
Vietnam11.11% / 17.65%
FCTB2B & B2C16/09/2022
Alberta5%Federal GSTB2C08/08/2021
British Columbia7% + 5%PST + Federal GSTB2B & B2C05/05/2021
Manitoba7% + 5%
RST + Federal GST
New Brunswick15%Federal HSTB2C10/07/2021
Newfoundland and Labrador15%Federal HSTB2C10/07/2021
Northwest Territories5%Federal GSTB2C10/07/2021
Nova Scotia15%Federal HSTB2C10/07/2021
Nunavut5%Federal GSTB2C10/07/2021
Ontario13%Federal HSTB2C10/07/2021
Prince Edward Island15%Federal HSTB2C10/07/2021
Quebec9.975% + 5%QST + Federal GSTB2C01/01/2019
Sasketchewan6% + 5%PST + Federal GSTB2C15/01/2021
Yukon5%Federal GSTB2C10/07/2021
EU Countries____
Austria20%VAT MOSSB2C01/01/2015
Belgium21%VAT MOSSB2C01/01/2015
Bulgaria20%VAT MOSSB2C01/01/2015
Croatia25%VAT MOSSB2C01/01/2015
Cyprus19%VAT MOSSB2C01/01/2015
Czech Republic21%VAT MOSSB2C01/01/2015
Denmark25%VAT MOSSB2C01/01/2015
Estonia20%VAT MOSSB2C01/01/2015
Finland24%VAT MOSSB2C01/01/2015
France20%VAT MOSSB2C01/01/2015
Germany19%VAT MOSSB2C01/01/2015
Germany temporary VAT cut16%VAT MOSSB2C01/07/2020 to 31/12/2020
Greece24%VAT MOSSB2C01/01/2015
Hungary27%VAT MOSSB2C01/01/2015
Iceland24%VATB2B & B2C24/10/2018
Ireland temporary VAT cut21%VATB2C04/09/2020 to 28/02/2021
Italy22%VAT MOSSB2C01/01/2015
Latvia21%VAT MOSSB2C01/01/2015
Liechtenstein7.7%VATB2B & B2C21/01/2021
Lithuania21%VAT MOSSB2C01/01/2015
Luxembourg - previous rate17%VAT MOSSB2C01/01/2015 to 31/12/2022
Luxembourg16%VAT MOSSB2C01/01/2023
Malta18%VAT MOSSB2C01/01/2015
Netherlands21%VAT MOSSB2C01/01/2015
Poland23%VAT MOSSB2C01/01/2015
Portugal23%VAT MOSSB2C01/01/2015
Romania19%VAT MOSSB2C01/01/2015
Slovak Republic20%VAT MOSSB2C01/01/2015
Slovenia22%VAT MOSSB2C01/01/2015
Spain21%VAT MOSSB2C01/01/2015
Sweden25%VAT MOSSB2C01/01/2015
Switzerland7.7%VATB2B & B2C01/01/2010
United Kingdom20%VAT/ VAT MOSSB2B & B2C01/01/2015
United States*____
Alabama4%Sales TaxB2B & B2C01/10/2018
Arizona5.6%Sales TaxB2B & B2C19/12/2019
Arkansas6.5%Sales TaxB2C19/12/2019
Colorado2.9%Sales TaxB2B & B2C31/05/2019
Connecticut6.35%Sales TaxB2B & B2C19/12/2019
Denver - Previous rate4.31%Sales TaxB2B & B2C01/06/2019 - 31/12/2020
Denver4.81%Sales TaxB2B & B2C01/01/2021
District of Columbia6%Sales TaxB2B & B2C19/12/2019
Hawaii4%Sales TaxB2B & B2C19/12/2019
Idaho6%Sales TaxB2B & B2C20/12/2019
Illinois6.25%Sales TaxB2C19/12/2019
Indiana7%Sales TaxB2B & B2C19/12/2019
Iowa6%Sales TaxB2B & B2C19/12/2019
Kansas6.5%Sales TaxB2B & B2C19/12/2019
Kentucky6%Sales TaxB2B & B2C19/12/2019
Louisiana4.45%Sales TaxB2B & B2C19/12/2019
Maine5.5%Sales TaxB2B & B2C18/12/2019
Maryland6%Sales TaxB2B & B2C27/05/2021
Massachusetts6.25%Sales TaxB2B & B2C01/10/2017
Michigan6%Sales TaxB2C19/12/2019
Minnesota6.88%Sales TaxB2B & B2C31/10/2018
Mississippi7%Sales TaxB2B & B2C29/09/2020
Nebraska5.5%Sales TaxB2B & B2C18/12/2019
New Jersey6.63%Sales TaxB2B & B2C01/11/2018
New Mexico5.13%Sales TaxB2B & B2C19/12/2019
New York4%Sales TaxB2B & B2C21/06/2018
North Carolina4.75%Sales TaxB2B & B2C01/11/2018
North Dakota5%Sales TaxB2C10/11/2020
Ohio5.75%Sales TaxB2B & B2C01/01/2019
Pennsylvania6%Sales TaxB2B & B2C01/07/2019
Rhode Island7%Sales TaxB2B & B2C19/12/2019
South Carolina6%Sales TaxB2B & B2C19/12/2019
South Dakota4.5%Sales TaxB2B & B2C18/12/2019
Tennessee7%Sales TaxB2B & B2C19/12/2019
Texas8.00%Sales TaxB2B & B2C21/06/2018
Utah4.85%Sales TaxB2B & B2C19/12/2019
Vermont6%Sales TaxB2C19/12/2019
Washington6.5%Sales TaxB2B & B2C01/10/2018
West Virginia6%Sales TaxB2B & B2C18/12/2019
Wisconsin5%Sales TaxB2B & B2C18/12/2019
Wyoming4%Sales TaxB2B & B2C18/12/2019

* 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.

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