Tax rates for digital products
If you're working with us using the MoR (Merchant of Record) model, Cleverbridge manages global taxation on your behalf, handling tax registration, calculation, filing, remittance, and exemptions. This ensures your compliance with current and future tax regulations worldwide.
If you're under the cSP (Cleverbridge Service Provider) model, you are responsible for handling all aspects related to taxation in the markets where you sell your digital products and services.
Keep in mind that taxation differs greatly based on the region, country and state regulations.
Canada
The tax rates listed apply to all Canadian consumers, defined as individuals not registered for GST/HST. Business customers with valid proof of tax exemption are considered out of scope and will not incur charges.
Canada's sales tax system comprises:
- Federal Level: 5% Goods and Services Tax (GST) on non-resident digital services.
- Provincial Level: Various Provincial Sales Tax (PST) or Quebec Sales Tax (QST) rates.
Some provinces adopt a Harmonized Sales Tax (HST), combining federal and provincial components.
Our structured tax system, encompassing provincial, federal, and harmonized taxes, ensures compliance. View the effective tax rates categorized by province/territory in the Cumulative Rate column for a comprehensive overview.
| Province/Territory | Cumulative Rate | Goods and Services Tax (GST) | Harmonized Sales Tax (HST) | Provincial Sales Tax (PST, QST*, RST*) |
|---|---|---|---|---|
| Alberta | 5% | 5% | ||
| British Columbia | 12% | 5% | 7% | |
| Manitoba | 12% | 5% | 7% | |
| New Brunswick | 15% | 15% | ||
| Newfoundland and Labrador | 15% | 15% | ||
| Northwest Territories | 5% | 5% | ||
| Nova Scotia | 15% | 15% | ||
| Nunavut | 5% | 5% | ||
| Ontario | 13% | 13% | ||
| Prince Edward Island | 15% | 15% | ||
| Quebec | 14.975% | 5% | 9.975% | |
| Saskatchewan | 11% | 5% | 6% | |
| Yukon | 5% | 5% |
*QST=Quebec Sales Tax (only applicable to Quebec); RST=Retail Sales Tax (only applicable to Manitoba)
European Union
For B2B sales, Cleverbridge captures and verifies the business customer's VAT identification number, granting tax exemption status.
The following lists the VAT rates for the 27 member states of the European Union.
| EU Country | VAT Rate |
|---|---|
| Austria | 20% |
| Belgium | 21% |
| Bulgaria | 20% |
| Croatia | 25% |
| Cyprus | 19% |
| Czech Republic | 21% |
| Denmark | 25% |
| Estonia | 22% |
| Finland | 24% |
| France | 20% |
| Germany | 19% |
| Greece | 24% |
| Hungary | 27% |
| Ireland | 23% |
| Italy | 22% |
| Latvia | 21% |
| Lithuania | 21% |
| Luxembourg | 17% |
| Malta | 18% |
| Netherlands | 21% |
| Poland | 23% |
| Portugal | 23% |
| Romania | 19% |
| Slovakia | 20% |
| Slovenia | 22% |
| Spain | 21% |
| Sweden | 25% |
Rest of the world
Taxation for B2B sales varies by country/state. Business customers may qualify for tax exemption or a refund by providing a valid tax registration number.
The following countries/states, excluding the EU and the US, are where Cleverbridge collects and remits taxes.
| EU Country | Type of Tax | VAT Rate |
|---|---|---|
| Armenia | Value-Added Tax (VAT) | 20% |
| Australia | Goods and Services Tax (GST) | 10% |
| Bahrain | Value-Added Tax (VAT) | 10% |
| Belarus | Value-Added Tax (VAT) | 20% |
| Cambodia | Value-Added Tax (VAT) | 10% |
| Chile | Value-Added Tax (VAT) | 19% |
| China | Combined Chinese Tax | 17.78% |
| Colombia | Value-Added Tax (VAT) | 19% |
| Egypt | Value-Added Tax (VAT) | 14% |
| Republic of Georgia | Value-Added Tax (VAT) | 18% |
| Ghana | Goods and Services Tax (GST) | 21.90% |
| Iceland | Value-Added Tax (VAT) | 24% |
| India | Goods and Services Tax (GST) | 18% |
| Indonesia | Value-Added Tax (VAT) | 11% |
| Japan | Value-Added Tax (VAT) | 10% |
| Kazakhstan | Value-Added Tax (VAT) | 12% |
| Kenya | Value-Added Tax (VAT) | 16% |
| Liechtenstein | Value-Added Tax (VAT) | 8,1% |
| Malaysia | Sales and Service Tax (SST) | 6% |
| Moldova | Value-Added Tax (VAT) | 20% |
| New Zealand | Goods and Services Tax (GST) | 15% |
| Nigeria | Value-Added Tax (VAT) | 7.5% |
| Norway | Value-Added Tax (VAT) | 25% |
| Oman | Value-Added Tax (VAT) | 5% |
| Russia | Value-Added Tax (VAT) | 20% |
| Saudi Arabia | Value-Added Tax (VAT) | 15% |
| Singapore | Goods and Services Tax (GST) | 9% |
| South Africa | Value-Added Tax (VAT) | 15% |
| South Korea | Value-Added Tax (VAT) | 10% |
| Switzerland | Value-Added Tax (VAT) | 8,1% |
| Taiwan | Value-Added Tax (VAT) | 5% |
| Tajikistan | Value-Added Tax (VAT) | 14% |
| Thailand | Value-Added Tax (VAT) | 7% |
| Turkey | Value-Added Tax (VAT) | 20% |
| Ukraine | Value-Added Tax (VAT) | 20% |
| United Arab Emirates | Value-Added Tax (VAT) | 5% |
| United Kingdom | Value-Added Tax (VAT) | 20% |
| Uzbekistan | Value-Added Tax (VAT) | 12% |
United States
Each county, city, and special district has the authority to impose additional sales tax on top of the state tax rate.
In certain states, non-profit organizations may qualify for tax exemption by presenting a valid Cleverbridge document ID.
To view the current state sales tax rates considered by Cleverbridge for each US state, see State Sales Tax Rates.