This article explains why, starting January 12, 2026, NitroPack is required to charge sales taxes, such as Value Added Tax (VAT), Goods and Services Tax (GST), or Sales Tax on all paid subscriptions.
Why Is NitroPack Charging Taxes?
As a global business, we are legally required to comply with the tax laws of the countries where our customers live. International regulations require us to collect consumption tax (like VAT or GST) on behalf of the local government.
This is a standard practice for companies that provide services globally. The taxes we collect are paid directly to your country's tax authority.
How Is The Tax Calculated?
The tax rate applied to your subscription fee is not set by NitroPack. It is determined by the government of the country listed in your billing address.
Rate: The tax rate varies by country and, in some cases, by region or state.
Calculation: The tax is calculated on top of your subscription price.
Invoice: On your invoices, you will see the tax you were charged listed as a separate line item, making it easy to identify.
How to Ensure The Right Tax Rate Is Applied
To ensure the correct tax rate is applied, it is essential that your billing information is accurate and up-to-date.
Verify Your Billing Address
Please take a moment to review your billing details to ensure your country and address are correct. Here’s how you can do it:
Log in to your NitroPack account
Go to Billing and click Manage Billing
For FastSpring Users
After clicking Manage Billing, you’ll be redirected to FastSpring Checkout.
Go to Account Details
Click Edit under the Your Profile section to update your information
Note: If you are a registered business and need to add a Tax ID, please contact FastSpring Support for assistance.
For Stripe Users
After clicking Manage Billing, you’ll be redirected to your Stripe account.
Go to Billing and Shipping Information
Click Update information to make any changes
Review your details and click Save
Tax Exemption for Business Customers (B2B)
If you are a registered business, you may be eligible for a tax exemption through a "reverse charge" mechanism. If you have a valid VAT or GST registration number, please add it to your billing details.
If the ID is valid, we will not charge tax on your future subscriptions.
Frequently Asked Questions (FAQ)
What are VAT and GST?
VAT (Value Added Tax) and GST (Goods and Services Tax) are consumption taxes that are charged on goods and services sold. They are a common form of tax used by governments around the world.
Can I get a tax exemption?
Tax exemptions are typically available to registered businesses with a valid VAT or GST ID. If you are a registered business, please add your tax ID to your billing profile. Non-profits or charities should consult their local tax advisors, as eligibility for exemptions varies by country.
Where will I see the tax on my invoice?
If applicable to you, the tax will appear as a separate line item on all invoices issued after January 12, 2026. This will clearly show the amount of your subscription and the amount of tax charged.