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.

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

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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

*Verifone Payments BV dba 2Checkout is registered in the Netherlands, impacting the VAT calculations for B2B transactions.

**Post 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.

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	B2C B2B**	20% 25%	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

*Norwegian companies with valid TAX IDs are tax-exempt.

**Serbian 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

*Indian companies that provide GSTIN are tax-exempt. No VAT is applicable if a valid VAT ID from Oman is provided.

**Australian, 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

State	Tax type	Taxable products / services	Transaction type	Tax rate	Applicability (based on merchant location)
Quebec	QST	All	B2C	9.975%	All merchants
Quebec	GST	All	B2C	5%	All merchants
British Columbia	PST	All	B2C and B2B	7%	All merchants
British Columbia	GST	All	B2C	5%	All merchants
Saskatchewan	PST	All	B2C	6%	All merchants
Saskatchewan	GST	All	B2C	5%	All merchants
Alberta	GST	All	B2C	5%	All merchants
Ontario	HST	All	B2C	13%	All merchants
Manitoba	PST	All	B2C	7%	All merchants
Manitoba	GST	All	B2C	5%	All merchants
Nova-Scotia	HST	All	B2C	14%	All merchants
New-Brunswick	HST	All	B2C	15%	All merchants
Newfoundland	HST	All	B2C	15%	All merchants
Prince-Edward-Island	HST	All	B2C	15%	All merchants
Northwest Territories	GST	All	B2C	5%	All merchants
Nunavut	GST	All	B2C	5%	All merchants
Yukon	GST	All	B2C	5%	All merchants

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

*A flat sales tax rate of 8% is applied to all transactions in Texas.

FAQs

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?

• 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.

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

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