Taxes Collected

Because ClickBank is considered the final retailer/reseller for all products sold through ClickBank, it is our responsibility to collect and remit various types of taxes based on the customer's location. ClickBank automatically collects and remits taxes for jurisdictions in which ClickBank is legally required to do so. In addition to taxes collected due to our corporate status or "nexus," here is more information about tax requirements in specific jurisdictions.

Value Added Tax (VAT) is calculated differently from other taxes. Standard taxes are added to the total cost of a product before ClickBank's portion is calculated, but VAT is added after ClickBank's portion is calculated.

For example, if a product sells for $100, and a sales tax of 10% is applied, the total price is $110, and the ClickBank portion is (.075 * $110) + $1 = $9.25. If the same product is subject to 10% VAT instead, the ClickBank portion is (.075 * $100) + $1 = $8.50.

Unless otherwise specified, the tax rates apply to all product types, and shipping & handling is taxed.

  • Australia – 10% VAT.
  • European Union VAT – Online retailers of digital products, including ClickBank, are required to collect VAT for products purchased by customers with a billing address located in the European Union (EU). ClickBank is responsible for remitting applicable sales tax since ClickBank resells the products to customers. The affiliate is not responsible for remitting the VAT. Specific VAT rates include:
    • Austria – 20% VAT.
    • Belgium – 21% VAT.
    • Bulgaria – 20% VAT.
    • Croatia – 25% VAT.
    • Cyprus – 19% VAT.
    • Czech Republic – 21% VAT.
    • Denmark – 25% VAT.
    • Estonia – 20% VAT.
    • Finland – 24% VAT.
    • France – 20% VAT.
    • Germany – 19% VAT.
    • Greece – 23% VAT.
    • Hungary – 27% VAT.
    • Ireland – 23% VAT.
    • Italy – 22% VAT.
    • Latvia – 21% VAT.
    • Lithuania – 21% VAT.
    • Luxembourg – 17% VAT.
    • Malta – 18% VAT.
    • The Netherlands – 21% VAT.
    • Poland – 23% VAT.
    • Portugal – 23% VAT.
    • Romania – 20% VAT.
    • Slovakia – 20% VAT.
    • Slovenia – 22% VAT.
    • Spain – 21% VAT.
    • Sweden – 25% VAT.
    • United Kingdom – 20% VAT.
  • Iceland – 24% VAT.
  • Japan – 8% VAT.
  • New Zealand – 15% VAT.
  • Norway – 25% VAT.
  • Russia – 18% VAT.
  • South Africa – 14% VAT.
  • South Korea – 10% VAT.
  • Switzerland – 8% VAT.
  • Taiwan – 5% VAT.
  • United States – Specific states and locations may be subject to sales or usage taxes. Specifics include:
    • Alabama – 4% sales tax. Additional tax in some areas.
    • Arkansas – 6.5% sales tax. Additional tax in some areas.
    • California – 7.25% sales tax on physical products, not including shipping & handling. Additional tax in some areas.
    • Colorado – 2.9% sales tax. Additional tax in some areas.
    • Connecticut – 6.35% sales tax.
    • Georgia – 4% sales tax on physical products and shipping & handling. Additional tax in some areas.
    • Idaho – 6% sales tax. Shipping & handling are not taxed.
    • Illinois – 6.25% sales tax on physical products, shipping & handling, and software. Additional tax in some areas.
    • Indiana – 7% sales tax.
    • Kansas – 6.5% sales tax on physical products, shipping & handling, and software. Additional tax in some areas.
    • Louisiana – 5% sales tax on all products, not including shipping & handling.
    • Maine – 5.5% sales tax.
    • Michigan – 6% sales tax on physical products, shipping & handling, and software.
    • Minnesota – 6.875% sales tax.
    • Mississippi – 7% sales tax.
    • Missouri – 4.225% usage tax on physical products and shipping & handling. Additional tax in some areas.
    • Nevada – 6.85% sales tax on physical products and shipping & handling. Additional tax in some areas.
    • New Jersey – 6.88% sales tax.
    • New York – 4% sales tax on physical products, shipping & handling, and software. Additional tax in some areas.
    • North Carolina – 4.75% sales tax.
    • Ohio – 5.75% usage tax. Additional tax in some areas.
    • Oklahoma – 4.5% sales tax on physical products and shipping & handling. Additional tax in some areas.
    • Pennsylvania – 6% sales tax. Additional tax in some areas.
    • Rhode Island – 7% sales tax on physical products, shipping & handling, and software.
    • South Dakota – 4.5% sales tax. Additional tax in some areas.
    • Tennessee – 7% sales tax. Additional tax in some areas.
    • Texas – 6.25% usage tax.
    • Utah – 4.7% sales tax on all products, not including shipping & handling.
    • Vermont – 6% sales tax. Additional tax in some areas.
    • Washington – 6.5% sales tax. Additional tax in some areas.
    • Wyoming – 4% sales tax on physical and digital products, not including shipping & handling. Additional tax in some areas.
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8 Comments

  • 0
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    Sima Ghosh

    what the vat rate in INDIA ???

  • 0
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    Owen Allen

    Sima,

    If a country isn't listed, we don't collect VAT or other taxes for purchases in that country.

  • 0
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    Charles Lamontagne

    So if a country isn't listed (i'm in Canada and selling to Canadien), is it my responsibility to give a % of taxes to the Canadien gouvernement when Clickbank pay me ? Do I owe the Canadien gouvernement money (except paying my income tax at the end of the year) ?

  • 0
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    Owen Allen

    Charles,

    You as a vendor are responsible for paying any taxes that we do not collect or remit.

  • 0
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    Charles Lamontagne

    Thanks Owen for your answer.

    So just to be 100% clear.

    Even if you say in this article: "ClickBank is considered the final retailer/reseller for all products sold through ClickBank, it is our responsibility to collect and remit various types of taxes based on the customer's location." I am considered the vendor and I am responsible for paying taxes that Clickbank do not collect or remit. Yes or no ?

    So if taxes on sales is 5% in Canada... for every 1$ that Clickbank give me, I got to take 0,05$ and send it to the Canadien gouvernement. Yes or No ?

    Thank you very much for your help, my accountant is really confused on this subject so I realy need a clear answer to know what to do.

    Charles

  • 0
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    Owen Allen

    Charles,

    I've looked into this a bit more, and the article may be incorrect about what taxes are collected in Canada. I'll investigate further and get back to you.

    Edited by Owen Allen
  • 0
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    Charles Lamontagne

    Hi Owen !

    You got some news for me ?

    Charles

  • 0
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    Owen Allen

    Charles,

    I'm still digging. I'll let you know as soon as I find out the full situation.

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