VAT (Value Added Tax, sometimes known as Sales Tax), is a tax on purchases. VAT must be collected on digital products sold to consumers within the EU, on certain inter-state US transactions, and in a growing number of other countries. It is charged on top of the sale price of a product and must be returned to the relevant tax authority i.e. the governing body at the user’s location.
GetBlock built a partnership with
Paddle, merchant of record. Paddle helps us to facilitate users’ payments for our service and also handle their tax responsibility. Paddle calculates VAT amount automatically, collects it and passes it on to the relevant authority of the user’s home country.
Whether a VAT charge is applied to a purchase depends on the user’s location; if the user is from
a country where VAT applies, a VAT charge will be applied to the transaction. The user is responsible for paying the VAT.