Will I be charged GST / VAT / Consumption Tax?

Will I be charged GST / VAT / Consumption Tax?

ApprovalMax utilizes a 3rd party service for the subscription billing. Our service provider 2Checkout (https://www.2checkout.com/) is an authorised reseller of ApprovalMax subscriptions. 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 of 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 Australia, Iceland, India, Japan, New Zealand, 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’s are tax exempt.

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

GST for Argentina customers

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 selling merchants. Therefore, 2Checkout will not issue invoices showing tax collected from Argentine shoppers. Instead, the Argentine shoppers' bank will apply an appropriate tax levy on top of 2Checkout charges for merchandise purchased. The bank then remits the tax to the Argentine Tax Authority.

On September 16, 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.

GST for New Zealand customers 

Since October 2016, New Zealand-based customers are charged an additional 15% sales tax when buying goods or services from non-New Zealand businesses. The billing service company, 2Checkout, 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

Australia GST on remote services

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/

VAT in the European Union

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 2Checkout 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/

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