Tax Rates for Digital Products
As your ecommerce provider, Cleverbridge calculates, applies, displays, collects, and remits taxes for digital products on your behalf.
Canada
Note
The tax rates below are relevant for all Canadian consumers. A consumer is essentially defined as someone who is not registered for GST/HST. Accordingly, business customers providing sufficient proof of tax exemption are out of scope and will not be charged.
Canada's sales tax regime has two levels:
- A federal level with a 5% goods and services tax (GST) on digital services provided by non-residents.
- A provincial level with different rates of provincial sales tax (PST) or Quebec sales tax (QST).
Furthermore, a harmonized sales tax (HST), including a provincial and a federal portion, applies in some provinces.
We have implemented a complex structure of provincial, federal, and harmonized sales tax to ensure compliance in Canada. To give you a clear picture of the tax framework, we have compiled an overview of the different types of individual sales tax, broken down by province/territory. The effective tax rate can be found in the second column Cumulative Rate.
| 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
Note
For B2B sales, Cleverbridge captures and validates the business customer
An individual or business purchasing your product or service by placing an order through Cleverbridge. The customer is the end user of this product, as they are not allowed to resell the purchased products or services.
A customer is unique per client. If a customer purchases products or services from two different clients, there are 2 separate records of said customer.'s VAT identification number so that the customer is tax exempt.
Below are 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 |
25.5% |
| 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
Note
Depending on the country/state, taxation may be different for B2B sales. Business customers can, for example, be tax exempt or eligible for a tax refund if they provide a valid tax registration number.
Below are the countries/states, other than EU and US, where Cleverbridge collects and remits taxes.
| Country/State | Type of Tax | Tax 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 | Value-Added Tax (VAT) | 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) | 8% |
| 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% |
| Peru | Value-Added Tax (VAT) | 18% |
| Russia | Value-Added Tax (VAT) | 20% |
| Saudi Arabia | Value-Added Tax (VAT) | 15% |
| Senegal | Value-Added Tax (VAT) | 18% |
| 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% |
| Tanzania | Value-Added Tax (VAT) | 18% |
| 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
Important
Each county, city, and special district can add their sales tax on top of the state tax rate.
Note
Depending on the state, non-profit organizations may be tax exempt if they provide a valid Cleverbridge document ID.
For a list of the current state sales tax rates, which Cleverbridge takes into account for each US state, see State Sales Tax Rates.