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Tax regulations

Overview

As your dedicated provider of commerce services, it is 2Checkout's, formerly Avangate'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. 

European VAT rates

EUropean Union countries

Country Taxable products/services Transaction type VAT rate Applicability (based on merchant location)

Belgium

All B2C 

21%

All merchants

Bulgaria

All B2C 

20%

All merchants

Czech Republic

All B2C 

21%

All merchants

Denmark

All B2C 

25%

All merchants

Germany

All B2C 

19%

All merchants

Estonia

All B2C 

20%

All merchants

Greece

All B2C 

24%

All merchants

Spain

All B2C 

21%

All merchants

France

All B2C 

20%

All merchants

Croatia

All B2C 

25%

All merchants

Ireland

All B2C 

23%

All merchants

Italy

All B2C 

22%

All merchants

Cyprus

All B2C 

19%

All merchants

Latvia

All B2C 

21%

All merchants

Lithuania

All B2C 

21%

All merchants

Luxembourg

All B2C 

17%

All merchants

Hungary

All B2C 

27%

All merchants

Malta

All B2C 

18%

All merchants

Netherlands

All B2C 

21%

All merchants

Austria

All B2C 

20%

All merchants

Poland

All B2C 

23%

All merchants

Portugal

All B2C 

23%

All merchants

Romania

All B2C 

19%

All merchants

Slovenia

All B2C 

22%

All merchants

Slovakia

All B2C 

20%

All merchants

Finland

All B2C 

24%

All merchants

Sweden

All B2C 

25%

All merchants

United Kingdom

All B2C 

20%

All merchants
         

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 Avangate purchase flows, including Express PayPal Checkout.

Non-European Union countries

Sales made by Avangate B.V. 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 in an easier manner.

Country Taxable products/services Transaction type VAT rate Applicability (based on merchant location)
Iceland All B2C and B2B 24% Foreign merchants
Norway All B2C and B2B 25% Companies with valid VAT ID’s are VAT exempt.
Russia All B2C 18% Foreign merchants
Switzerland All B2C and B2B 8% All merchants
Turkey All B2C and B2B 18% All merchants
Serbia  All B2C and B2B 20% All merchants

Non-European countries

Country Taxable products/services Transaction type Tax rate Applicability (based on merchant location)

India

All

B2C and B2B

18%

Foreign merchants

New Zealand

All

B2C and B2B

15%

Foreign merchants

Australia

All

B2C only

10%

All merchants

Taiwan

All

B2C and B2B

5%

Foreign merchants

South Africa

All except software*

B2C and B2B

14%

Foreign merchants

Japan All B2C and B2B 8% All merchants
South Korea All B2C and B2B 10% All merchants 

* Taxable services: educational services, games and games of chance, Internet-based auction services, miscellaneous services such as e-books, audio visual content, still images and music.

US sales tax

Avangate collects sales tax for a number of US states, however, tax rate vary depending on the zip code shoppers use as part of their billing address.

State Order with Backup Media Order without Backup Media

California

YES

(for the full value of the order)

NO

Florida

YES

(for the full value of the order)

NO

Georgia

YES

(for the value of Backup Media if it's price is stated separately)

NO

Illinois

YES

(for the full value of the order)

YES

(for the full value of the order)

Minnesota

YES

(for the full value of the order)

YES

(for the full value of the order)

Nebraska

YES

(for the full value of the order)

YES

(for the full value of the order)

Ohio

YES

(for the full value of the order)

YES

(for the full value of the order)

Texas

YES

(for the full value of the order)

YES

(for the full value of the order)

Pennsylvania

YES

(for the full value of the order)

YES

(for the full value of the order)

Frequently Asked Questions

  1. How does Avangate identify the shopper's country?
    • We determine the shopper's country by using two matching elements of the billing details provided by the shopper. The elements can include the shopper's IP address, the country of the bank that issued the credit/debit card, the billing address or the mobile country code used to identify the shopper's phone number.
  2. How is the VAT calculated for orders where I ship a CD and an electronic license key?
    • CDs are a back-up media, an additional service for the main product, thus they follow the same regime as the main product. Consequently, Avangate applies the same VAT as to the main transaction of the license.
  3. 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 it correctly when we resell them.