Paddle entirely handles VAT, Sales tax, GST for all digital products sold to countries where this is a legal requirement, eg. EU member states, USA, India, Australia and more. 

VAT registered businesses who purchase products through Paddle will not pay VAT if the transaction is cross-border (they do this by entering their VAT ID at the time of purchase).

For USA customers:

In America, the taxability differs from State to State, but in a lot of states clients will be exempt, and the taxes won’t be charged. Here is the list of States where Sales Taxes will be charged:

  • Connecticut
  • D.C.
  • Hawaii
  • Iowa
  • Ohio
  • South Caro
  • South Dako
  • Texas
  • West Virg

For Indian customers:

In India, web-hosting services are taxable for Business to Customer sales but not Business to Business. If you have a GST registered business, you can indicate the company’s details to avoid the taxes.

For EU customers:

In the EU, web-hosting services are taxable for Business to Customer sales but not Business to Business. If you have a VAT registered business, you can indicate the company’s details to avoid the taxes.

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