Why is tax added to the checkout price?

Various countries require a collection of value-added taxes for online sales. Some countries issue corporate use VAT ID, and if you use that ID during checkout, VAT will not be applied to the price. Depending on the country VAT can be known as GST (goods and services tax).

Here is the list of countries that require VAT (or sales tax):

  • All EU Countries (15% – 25%)
  • Canada (5%)
  • Norway (25%)
  • Iceland (24%)
  • Korea (10%)
  • Russia (18%)
  • New Zealand (15%)
  • Japan (8%)
  • Taiwan (5%)
  • Australia (10%)
  • India (18%)
  • United States (up to 7.5%, all states except for Alaska, Delaware, Montana, New Hampshire, Oregon)

The list of countries and states can be expanded in the future, depending the on the local VAT, GST (or other sales tax) laws. Values provided in this list can be changed at any time, and they are an approximation only. The real tax rate is displayed on checkout.

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