# Tax regulations

## Overview

As your dedicated provider of commerce services, it is 2Checkout's responsibility to stay up to date on worldwide financial and legal requirements to make sure you benefit from a seamless and fully compliant international buying and selling experience.

{% hint style="info" icon="lightbulb" %}

#### Find out how 2Checkout handles sales taxes, VAT, regulations, and other complicated updates for you!

<a href="https://www.2checkout.com/lp/2Checkout-Solution-Brief-Global-Tax-Financial-Services.html" class="button primary" data-icon="book-open-lines">Read more</a>
{% endhint %}

## European VAT rates

### European Union countries

| Country            | Taxable products/services | Transaction type | VAT rate | Applicability (based on merchant location) |
| ------------------ | ------------------------- | ---------------- | -------: | ------------------------------------------ |
| Austria            | All                       | B2C              |      20% | All merchants                              |
| Belgium            | All                       | B2C              |      21% | All merchants                              |
| Bulgaria           | All                       | B2C              |      20% | All merchants                              |
| Croatia            | All                       | B2C              |      25% | All merchants                              |
| Cyprus             | All                       | B2C              |      19% | All merchants                              |
| Czech Republic     | All                       | B2C              |      21% | All merchants                              |
| Denmark            | All                       | B2C              |      25% | All merchants                              |
| Estonia            | All                       | B2C              |      24% | All merchants                              |
| Finland            | All                       | B2C              |    25.5% | All merchants                              |
| France             | All                       | B2C              |      20% | All merchants                              |
| Germany            | All                       | B2C              |      19% | All merchants                              |
| Greece             | All                       | B2C              |      24% | All merchants                              |
| Hungary            | All                       | B2C              |      27% | All merchants                              |
| Ireland            | All                       | B2C              |      23% | All merchants                              |
| Italy              | All                       | B2C              |      22% | All merchants                              |
| Latvia             | All                       | B2C              |      21% | All merchants                              |
| Lithuania          | All                       | B2C              |      21% | All merchants                              |
| Luxembourg         | All                       | B2C              |      17% | All merchants                              |
| Malta              | All                       | B2C              |      18% | All merchants                              |
| Netherlands        | All                       | B2C and B2B\*    |      21% | All merchants                              |
| Poland             | All                       | B2C              |      23% | All merchants                              |
| Portugal           | All                       | B2C              |      23% | All merchants                              |
| Romania            | All                       | B2C              |      21% | All merchants                              |
| Slovakia           | All                       | B2C              |      23% | All merchants                              |
| Slovenia           | All                       | B2C              |      22% | All merchants                              |
| Spain              | All                       | B2C              |      21% | All merchants                              |
| Sweden             | All                       | B2C              |      25% | All merchants                              |
| United Kingdom\*\* | All                       | B2C              |      20% | All merchants                              |

**\***&#x56;erifone Payments BV dba 2Checkout is registered in the Netherlands, impacting the VAT calculations for B2B transactions.

**\*\***&#x50;ost Brexit, we will start collecting VAT through our newly registered UK ID. Till then we continue to collect VAT from the UK via our VAT ID in the Netherlands.

#### VAT exemption

VAT-registered business customers based in the European Union can pay for their orders while being charged according to the VAT ID they provide. VAT ID support is available for all 2Checkout purchase flows, including [Express PayPal Checkout](https://secure.avangate.com/cpanel/help.php?view=topic\&topic=741).

### Non-European Union countries

Sales made by Verifone Payments BV dba 2Checkout to customers in Iceland, Norway, and Switzerland are subject to each country’s VAT rate. Non-EU companies providing electronic services to customers in multiple EU countries are encouraged to use MOSS (Mini One-Stop-Shop) to collect and distribute VAT more efficiently.

| Country     | Taxable products / services | Transaction type      |          VAT rate | Applicability (based on merchant location) |
| ----------- | --------------------------- | --------------------- | ----------------: | ------------------------------------------ |
| Iceland     | All                         | B2C                   |               24% | All merchants                              |
| Georgia     | All                         | B2C                   |               18% | All merchants                              |
| Moldova     | All                         | B2C                   |               20% | All merchants                              |
| Norway      | All                         | B2C and B2B\*         |               25% | All merchants                              |
| Russia      | All                         | B2C and B2B           |               20% | All merchants                              |
| Serbia      | All                         | <p>B2C<br>B2B\*\*</p> | <p>20%<br>25%</p> | All merchants                              |
| Switzerland | All                         | B2C and B2B           |              8.1% | All merchants                              |
| Turkey      | All                         | B2C and B2B           |               20% | All merchants                              |
| Ukraine     | All                         | B2C                   |               20% | All merchants                              |

**\***&#x4E;orwegian companies with valid TAX IDs are tax-exempt.

**\*\***&#x53;erbian companies are charged 5% for the withholding tax, in addition to the 20% standard tax rate.

## Non-European countries

| Country              | Taxable products / services | Transaction type | Tax rate | Applicability (based on merchant location) |
| -------------------- | --------------------------- | ---------------- | -------: | ------------------------------------------ |
| Australia            | All                         | B2C and B2B\*\*  |      10% | All merchants                              |
| Bahrain              | All                         | B2C              |      10% | All merchants                              |
| Belarus              | All                         | B2C              |      20% | All merchants                              |
| Chile                | All                         | B2C              |      19% | All merchants                              |
| Colombia             | All                         | B2C              |      19% | All merchants                              |
| Egypt                | All                         | B2C              |      14% | All merchants                              |
| Ghana                | All                         | B2C and B2B      |      20% | All merchants                              |
| India                | All                         | B2C and B2B\*    |      18% | All merchants                              |
| Japan                | All                         | B2C and B2B      |      10% | All merchants                              |
| Kenya                | All                         | B2B and B2C      |      16% | All merchants                              |
| Malaysia             | All                         | B2B and B2C      |       8% | All merchants                              |
| New Zealand          | All                         | B2C and B2B\*\*  |      15% | All merchants                              |
| Oman                 | All                         | B2C              |       5% | All merchants                              |
| Saudi Arabia         | All                         | B2C              |      15% | All merchants                              |
| Singapore            | All                         | B2C and B2B\*\*  |       9% | All merchants                              |
| South Africa         | All                         | B2C and B2B      |      15% | All merchants                              |
| South Korea          | All                         | B2C              |      10% | All merchants                              |
| Taiwan               | All                         | B2C              |       5% | Foreign merchants                          |
| Tanzania             | All                         | B2C              |      18% | All merchants                              |
| Thailand             | All                         | B2C              |       7% | All merchants                              |
| Uganda               | All                         | B2C              |      18% | All merchants                              |
| United Arab Emirates | All                         | B2C              |       5% | All merchants                              |
| Vietnam              | All                         | B2C              |      10% | All merchants                              |
| Zambia               | All                         | B2C              |      16% | All merchants                              |

**\***&#x49;ndian companies that provide GSTIN are tax-exempt. No VAT is applicable if a valid VAT ID from Oman is provided.

**\*\***&#x41;ustralian, New Zealand, Canadian (Quebec only), and Singapore companies that provide a valid VAT/GST ID are tax-exempt. If a valid VAT/GST ID is not provided, the invoice will be issued with Sales tax. For Singapore and New Zealand, 2Checkout is not required to validate the VAT-ID documents provided by shoppers.

### Taxes in Argentina

Argentina has made recent changes to its tax laws which impact purchases by Argentine shoppers. Merchants should be aware of these tax costs so they can adjust pricing (if they so choose) or at least be aware of the competitive landscape of selling in Argentina.

Argentina places the responsibility for applying VAT and other taxes on banks and credit card processors and not on selling merchants. Therefore, 2Checkout will not issue invoices showing tax collected from Argentine shoppers. Instead, the Argentine shoppers' bank will apply an appropriate tax levy on top of 2Checkout charges for merchandise purchased. The bank then remits the tax to the Argentine Tax Authority.

On September 16, 2020, Argentina passed a new tax measure that applies an additional 35% tax on top of existing VAT and other taxes. As such, an item purchased for **ARS 100** will ultimately cost the shopper **ARS 164**.

## Canada GST/PST Tax

<table><thead><tr><th>State</th><th width="110.00006103515625">Tax type</th><th>Taxable products / services</th><th>Transaction type</th><th width="101" align="right">Tax rate</th><th>Applicability (based on merchant location)</th></tr></thead><tbody><tr><td>Quebec</td><td>QST</td><td>All</td><td>B2C</td><td align="right">9.975%</td><td>All merchants</td></tr><tr><td>Quebec</td><td>GST</td><td>All</td><td>B2C</td><td align="right">5%</td><td>All merchants</td></tr><tr><td>British Columbia</td><td>PST</td><td>All</td><td>B2C and B2B</td><td align="right">7%</td><td>All merchants</td></tr><tr><td>British Columbia</td><td>GST</td><td>All</td><td>B2C</td><td align="right">5%</td><td>All merchants</td></tr><tr><td>Saskatchewan</td><td>PST</td><td>All</td><td>B2C</td><td align="right">6%</td><td>All merchants</td></tr><tr><td>Saskatchewan</td><td>GST</td><td>All</td><td>B2C</td><td align="right">5%</td><td>All merchants</td></tr><tr><td>Alberta</td><td>GST</td><td>All</td><td>B2C</td><td align="right">5%</td><td>All merchants</td></tr><tr><td>Ontario</td><td>HST</td><td>All</td><td>B2C</td><td align="right">13%</td><td>All merchants</td></tr><tr><td>Manitoba</td><td>PST</td><td>All</td><td>B2C</td><td align="right">7%</td><td>All merchants</td></tr><tr><td>Manitoba</td><td>GST</td><td>All</td><td>B2C</td><td align="right">5%</td><td>All merchants</td></tr><tr><td>Nova-Scotia</td><td>HST</td><td>All</td><td>B2C</td><td align="right">14%</td><td>All merchants</td></tr><tr><td>New-Brunswick</td><td>HST</td><td>All</td><td>B2C</td><td align="right">15%</td><td>All merchants</td></tr><tr><td>Newfoundland</td><td>HST</td><td>All</td><td>B2C</td><td align="right">15%</td><td>All merchants</td></tr><tr><td>Prince-Edward-Island</td><td>HST</td><td>All</td><td>B2C</td><td align="right">15%</td><td>All merchants</td></tr><tr><td>Northwest Territories</td><td>GST</td><td>All</td><td>B2C</td><td align="right">5%</td><td>All merchants</td></tr><tr><td>Nunavut</td><td>GST</td><td>All</td><td>B2C</td><td align="right">5%</td><td>All merchants</td></tr><tr><td>Yukon</td><td>GST</td><td>All</td><td>B2C</td><td align="right">5%</td><td>All merchants</td></tr></tbody></table>

## US Sales Tax

Verifone Payments BV dba 2Checkout collects sales tax for a number of US states; the tax rate varies depending on the address of the shopper.

| State           | Order                                           |
| --------------- | ----------------------------------------------- |
| Alabama         | <p>YES<br>(for the full value of the order)</p> |
| Arizona         | <p>YES<br>(for the full value of the order)</p> |
| Arkansas        | NO                                              |
| California      | NO                                              |
| Colorado        | NO                                              |
| Connecticut     | <p>YES<br>(for the full value of the order)</p> |
| Florida         | NO                                              |
| Georgia         | NO                                              |
| Hawaii          | <p>YES<br>(for the full value of the order)</p> |
| Idaho           | NO                                              |
| Illinois        | <p>YES<br>(for the full value of the order)</p> |
| Indiana         | <p>YES<br>(for the full value of the order)</p> |
| Iowa            | <p>YES<br>(for the full value of the order)</p> |
| Kansas          | <p>YES<br>(for the full value of the order)</p> |
| Kentucky        | <p>YES<br>(for the full value of the order)</p> |
| Louisiana       | <p>YES<br>(for the full value of the order)</p> |
| Maine           | <p>YES<br>(for the full value of the order)</p> |
| Maryland        | <p>YES<br>(for the full value of the order)</p> |
| Massachusetts   | <p>YES<br>(for the full value of the order)</p> |
| Michigan        | <p>YES<br>(for the full value of the order)</p> |
| Minnesota       | <p>YES<br>(for the full value of the order)</p> |
| Mississippi     | <p>YES<br>(for the full value of the order)</p> |
| Nebraska        | <p>YES<br>(for the full value of the order)</p> |
| Nevada          | NO                                              |
| New Jersey      | <p>YES<br>(for the full value of the order)</p> |
| New Mexico      | <p>YES<br>(for the full value of the order)</p> |
| New York        | <p>YES<br>(for the full value of the order)</p> |
| North Carolina  | <p>YES<br>(for the full value of the order)</p> |
| North Dakota    | <p>YES<br>(for the full value of the order)</p> |
| Ohio            | <p>YES<br>(for the full value of the order)</p> |
| Oklahoma        | NO                                              |
| Pennsylvania    | <p>YES<br>(for the full value of the order)</p> |
| Puerto Rico     | <p>YES<br>(for the full value of the order)</p> |
| Rhode Island    | <p>YES<br>(for the full value of the order)</p> |
| South Carolina  | NO                                              |
| South Dakota    | <p>YES<br>(for the full value of the order)</p> |
| Tennessee       | <p>YES<br>(for the full value of the order)</p> |
| Texas\*         | <p>YES<br>(for the full value of the order)</p> |
| Utah            | <p>YES<br>(for the full value of the order)</p> |
| Vermont         | <p>YES<br>(for the full value of the order)</p> |
| Virginia        | NO                                              |
| Washington      | <p>YES<br>(for the full value of the order)</p> |
| Washington D.C. | <p>YES<br>(for the full value of the order)</p> |
| West Virginia   | <p>YES<br>(for the full value of the order)</p> |
| Wisconsin       | <p>YES<br>(for the full value of the order)</p> |
| Wyoming         | <p>YES<br>(for the full value of the order)</p> |

**\***&#x41; flat sales tax rate of 8% is applied to all transactions in Texas.

## FAQs

<details>

<summary>It appears that the place of supply is calculated differently for phone consulting and software. Do I have to tell you what kind of service I am selling when I bill someone?</summary>

* Yes, you should provide an accurate description of your products in the Order Form/Contract so that we can represent them correctly when we resell them.

</details>

<details>

<summary>How does 2Checkout calculate the VAT/sales tax value for all orders?</summary>

* 2Checkout calculates the VAT/sales tax value based on the delivery address details provided by the customer in the shopping cart.

</details>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.2checkout.com/taxes/taxes/tax-regulations.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.