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Will I be charged GST / VAT / Consumption Tax?

Updated this week

How taxes are collected

ApprovalMax utilises 3rd-party services for subscription billing: Stripe and 2Checkout. For customers in the UK, Germany, Australia and New Zealand, ApprovalMax collects and reports VAT/GST in line with local regulations. Payments by customers from other regions are processed through 2Checkout, which acts as the Merchant of Record. As the Merchant of Record, 2Checkout follows all applicable tax laws based on the customer’s billing location and is responsible for collecting and remitting any required taxes.

For customers in EU member states, VAT is applied according to the customer’s country of residence or establishment. Business customers with a valid VAT ID can enter it during checkout to be exempt from VAT.

2Checkout may collect taxes in certain countries as required by local regulations. Any tax applied in these cases is handled entirely by 2Checkout under its Merchant of Record obligations.

Sales tax exemptions may be available in some countries for business customers who provide a valid business identifier, depending on local rules.

Serbian companies are charged 5% for the withholding tax, in addition to the 20% standard tax rate.

Customers in New Zealand

Since October 2016, New Zealand–based customers are charged an additional 15% GST when purchasing goods or services from businesses not resident in New Zealand. Stripe, as the billing service provider, is required to collect GST in addition to the ApprovalMax net price. The total subscription cost, including GST, is displayed in the shopping cart at checkout.

Business customers may be exempt from GST when they provide a valid NZBN during the checkout process, in line with local regulations.

For more details about the GST rules for non-resident businesses supplying remote services to New Zealand customers, please refer to the official website

Australian GST on remote services

Since 1 July 2017, a 10% GST applies to sales made to customers based in Australia. Stripe calculates and adds this tax to the ApprovalMax net price, and the full subscription cost, including GST, is displayed in the shopping cart at checkout.

Business customers may be exempt from GST when they provide a valid ABN during the checkout process, in accordance with local regulations.

For more information on the GST rules for imported services and digital products, please refer to the official website.

VAT in the European Union

For customers located in EU member states, VAT is applied in accordance with local regulations.

Business customers can enter a valid VAT ID at the time of purchase to be exempt from VAT. When a VAT ID is provided and successfully validated, no VAT will be charged, and the VAT ID will appear on the invoice issued after purchase.

For a complete list of EU member states, their standard VAT rates, and more information about the VAT regulations in effect since 2015, please refer to VAT in the Taxation and Custom Union and European Union VAT rates.

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