Here we explain what you need to know about how we manage payments and taxes and comply with the tax regulations of each country. Please note that this article does not constitute legal or tax-related advice.
Table of Contents
- Purchase through FastSpring
- VAT information – EU and UK
- US Sales Tax Information – United States
- Information on Other Taxes (VAT and GST) – Other Countries
- Can I Recover Taxes (VAT, Sales Tax or GST) from Previous Invoices?
Purchase through FastSpring
We use FastSpring to manage subscription payments and taxes and comply with tax regulations applicable to residents and businesses in the thousands of jurisdictions around the world.
FastSpring is a US-based company that offers a PCI-compliant, secure online sales platform using Verisign SSL certificates. FastSpring is responsible for processing subscription payments, collecting the applicable taxes and remitting them on our behalf.
How do I Make a Purchase with FastSpring?
When you subscribe or buy any of our products, a pop-up window will appear in which you must enter the necessary information to proceed with the payment and calculation of the taxes that apply to you.
Make sure to select, in the top right corner, the country you want your purchase to be billed to. By default, FastSpring calculates it from your browser’s IP but you can change it as you wish.
From here, all you have to do is enter the requested information in the different fields shown to proceed with the payment.
Purchase Confirmation and Invoice
When you complete a purchase and each time you make a subscription renewal payment, FastSpring will send you an email with the payment details to the email address provided at the time of purchase.
This email also includes a link, View Invoice, so you can download the invoice. By clicking on this link, a new window will open in your browser showing the invoice so you can save it as a PDF or print it.
VAT information – EU and UK
This section is only relevant to you if you are an EU or UK resident or if your business is registered in the EU or UK.
What is VAT?
VAT (Value Added Tax) is a form of tax payable upon purchase of most goods or services in the EU or UK. This includes digital services such as those included by our plugins. The VAT rate, a percentage of the price that is added to each invoice, is defined by each country. Depending on the country where you reside or where your company is registered, the VAT rate will be different.
Data on specific VAT rates are regularly published. Keep in mind that each country can establish several VAT rates. For specific rates, see the reference page published by FastSpring. Our services are included in the Standard Rate column.
Why does FastSpring, a US Company, Charge VAT?
In most cases, a company is only liable for tax liability in a given country if it has a permanent establishment in that country. However, in the case of VAT, this is not true. Under European law, companies are required to collect and remit VAT, even if they do not have a permanent establishment in the EU or the UK.
FastSpring’s VAT identification number is EU826012240 and starts with EU because FastSpring is a US. company. All invoices issued for our services, where VAT has been applied, will include the FastSpring’s VAT identifier.
How does it Affect me? VAT Exemptions
If you are an EU or UK resident, or your business is registered in the EU or UK, FastSpring is generally required to charge VAT on your purchases.
If you are a company with a valid VAT Number in the VIES system (European VAT Number), you are exempt from VAT. FastSpring, according to the applicable tax rules, will apply a zero VAT rate. This means that we will charge 0% VAT.
How do I Enter my VAT Number?
Al introducir la información de pago cuando realices la compra, asegúrate de haber informado el NIF Europeo en el enlace Introduzca ID de IVA que tienes disponible en la ventana emergente de pago.
When entering your payment information at checkout, make sure you have entered the European VAT number in the link Enter VAT ID that you have available in the payment pop-up window.
I forgot to enter the VAT number or I want to change it
If you forgot to enter your VAT number when subscribing to any of our products or want to change it, contact us and we’ll arrange for FastSpring to add or change it on your next invoices.
Please note that a VAT change can only be made if it corresponds to a VAT from the same country. In case of a change of country, it will be necessary to create a new subscription. Contact us for more details.
US Sales Tax Information – United States
This section is only relevant for you if you are a US resident or if your company is registered in the United States.
What is the US Sales Tax?
The Sales Tax is an excise tax levied on the sale of goods and services. Sales tax is regulated by the various states and may also be collected by local municipalities, so the percentage varies from one city and to another. You can learn more about this tax at usa.gov.
What States are Affected by the US Sales Tax?
US Sales Tax is calculated and applied based on where the services are provided. We determine the location in which our services are used by looking at the address you provide us when you register. If you need to change this address, please contact us.
For specific US Sales Tax rates, see the reference page published by FastSpring. Our services are included in the Standard Rate column.
How does it Affect me? US Sales Tax Exemptions
If you are a US resident, or your business is registered in the US, FastSpring is required to apply US Sales Tax if you are in a state that requires its application (see list).
Under certain circumstances, you or your company may benefit from an exemption from the US Sales Tax. If so, contact us with a copy of your tax exemption certificate and we will arrange for FastSpring to update your information.
How do I Enter my Zip Code?
When you enter your payment information at checkout, the payment popup window will ask for your ZIP code to calculate and show you the applicable tax.
I Want to Change the ZIP code
If you want to change the ZIP code, contact us and we’ll arrange for FastSpring to add or change it on your next invoices.
Information on Other Taxes (VAT and GST) – Other Countries
This section is only relevant to you if you are a resident or your company is registered in any non-EU country other than the United States or the United Kingdom.
What Taxes Apply?
FastSpring calculates taxes in real time, whether it is a Value Added Tax (VAT) or a Goods and Services Tax (GST), based on your location and the type of product you are buying and automatically applies these taxes at checkout, as required by your country’s local regulations. Remember that FastSpring by default uses your IP to determine your location, but you can change it as explained at the beginning of this article.
To see the tax rates that apply to each country, please refer to the reference page published by FastSpring. Our services are included in the Standard Rate column.
How does it Affect me? Applicable Exemptions
Once you select the country, FastSpring will calculate which taxes apply to your purchase. If under certain circumstances you or your business may benefit from an exemption from the taxes shown, please contact us with a copy of your tax exemption certificate and we will arrange for FastSpring to update your information.
How do I Enter my ZIP Code, and VAT or GST ID?
When you enter your payment information at checkout, the payment popup window will allow you to enter the information needed to make the calculation and show you the tax that applies. So, for example, to calculate the taxes that apply in Canada, you can enter the GST ID if you are buying on behalf of a company and enter the postal code.
I Forgot to Enter the GST, or I Want to Change the ZIP code or the VAT or GST ID
If you didn’t enter your VAT or GST ID when signing up for any of our products, or want to change the ZIP code, or VAT or GST ID, contact us and we’ll arrange for FastSpring to add or change them on your future bills.
Please note that a VAT or GST ID change can only be made if it corresponds to a VAT or GST ID from the same country. In case of a change of country, it will be necessary to create a new subscription. Contact us for more details.
Can I Recover Taxes (VAT, Sales Tax or GST) from Previous Invoices?
The tax information must have been entered at the time of purchase and unfortunately in most cases we cannot refund such taxes on previous invoices. But if you contact us, we will make sure that this information is incorporated into the renewals of your services.