ApprovalMax utilises 3rd-party services for the subscription billing: Stripe and 2Checkout (www.2checkout.com). For customers in EU, AU, NZ regions, ApprovalMax Germany handles the taxes for purchases. For customers in the UK and ZA, ApprovalMax Limited (UK) handles the taxes for purchases. Payments by customers from other regions will go through 2Checkout. Being the Merchant of Record, 2Checkout follows all laws and regulations and is responsible for the collection of sales tax.
2Checkout does collect sales taxes from customers located in a number of US states, however, tax rates vary depending on the zip code for the billing address.
According to EU regulations, all customers located within the European Union are required to pay VAT for intra-community purchases unless they have a valid VAT ID, in which case they are exempt from VAT. The VAT rate is charged according to the customer's country of residence or establishment. When activating an ApprovalMax subscription, you have to provide your VAT ID to be exempted from the VAT charge.
2Checkout collects sales tax for customers in Iceland, India, Japan, Norway, Russia, Serbia, South Africa, South Korea, Switzerland, Taiwan and Turkey.
Sales tax exemptions may be available in some countries for business customers who provide a valid tax number or business number.
Business customers will be exempted from GST when they provide a valid NZBN number during the checkout process.
Australian, New Zealand, Canadian (Quebec only), and Singapore companies that provide a valid VAT/GST ID are tax-exempt.
Norwegian companies with valid TAX ID are tax-exempt.
Serbian companies are charged 5% for the withholding tax, in addition to the 20% standard tax rate.
Argentina has made recent changes to its tax laws.
Argentina places the responsibility for applying VAT and other taxes on banks and credit card processors and not on the selling merchants. Therefore, 2Checkout will not issue invoices showing tax collected from Argentine shoppers. Instead, the banks of Argentine shoppers will apply an appropriate tax levy on top of the 2Checkout charges for the merchandise purchased. The bank then remits the tax to the Argentine Tax Authority.
On 16 September 2020, Argentina passed a new tax measure that applies an additional 35% tax on top of existing VAT and other taxes. As such, an item purchased for ARS 100 will ultimately cost the shopper ARS 164.
Since October 2016, New Zealand-based customers are charged an additional 15% sales tax when buying goods or services from businesses not resident in New Zealand. The billing service company, Stripe, is required to collect GST in addition to the ApprovalMax net price. The total cost of ApprovalMax subscriptions as well as the incurring taxes are displayed in the shopping cart.
To find out more about the GST law change for non-resident businesses supplying remote services to New Zealand customers, please visit: http://www.ird.govt.nz/industry-guidelines/non-res-bus-gst/online-services/non-res-bus-gst-online-services.html
Since 1 July 2017, an additional 10% tax is charged for sales to Australia-based customers.
The total cost of ApprovalMax subscriptions and the incurring taxes are displayed in the shopping cart.
Business customers will be exempted from GST when they provide a valid ABN number during the checkout process.
For details about the GST change for imported services and digital products, please visit https://www.ato.gov.au/Business/International-tax-for-business/GST-on-imported-services-and-digital-products/
Businesses making digital purchases can be exempted from VAT when they provide their valid VAT ID at the time of purchase. For those providing a VAT ID, no Value Added Tax will be charged, and the VAT ID will be included on the invoice Stripe provides at purchase completion.
For a list of EU member states and their standard VAT rates, as well as more details on the VAT Regulations as from 2015, please visit https://ec.europa.eu/taxation_customs/business/vat_en or http://www.vatlive.com/vat-rates/european-vat-rates/