You maybe already noticed, that the taxes settings in Easy Digital Downloads (EDD) are disabled, when our ProteusPay – FastSpring for EDD plugin is set as the EDD payment gateway. You might be thinking “why is that?”. The short answer is: FastSpring handles taxes automatically, so there are no settings needed. Now let’s look at a bit longer answer from FastSpring, with more details 🙂
VAT taxes are reported and paid to the EU by FastSpring. The invoice we provide to you at purchase completion will include the VAT amount as well as the FastSpring VAT ID.
You can read the full VAT Tax collection explanation on the FastSpring page.
In Easy Digital Download (EDD) settings, you should set the shop currency to your FastSpring payout currency, which is USD ($) in most cases (in Downloads » Settings » General » Currency).
If your FastSpring payout currency is USD ($), which is in most cases, then your product prices defined in EDD will be tax exclusive. This means, that when a user purchases a product from your shop and his country requires taxes for digital products, then the tax amount will be added to the price you specified in the EDD product.
If your FastSpring payout currency is anything else then USD($), for example EUR(€), GBP(£),… then your product prices in EDD will be tax inclusive. This means, that the price will be the same for all buyers, irregardless, if the buyers country has taxes for digital products. If your buyer is from a country, which requires taxes and they are exempted from VAT Tax by providing their valid VAT ID at the time of purchase, then the tax amount will be removed from the total price.
If your FastSpring payout currency is USD ($), but you still want to define your products with tax included prices, then you will have to create a product in the FastSpring dashboard, define it’s price in other currency (EUR, GBP, …) and connect it with the EDD product.
FastSpring also handles any currency conversions from your shop currency to the buyers currency automatically.
You should read the FastSpring documentation on Currencies, Conversions and Taxes topic, since they have a few rules, that are nice to know.
Currencies recorded in EDD Payments
Each payment made with FastSpring will create a new EDD Payment, which you can view in Downloads » Payment History. By default the currency recorded in these payments is your FastSpring payout currency, which is USD ($) in most cases.
Clients can pay with any FastSpring available currency. You can disable individual currencies in your FastSpring dashboard. Login to your FastSpring dashboard, and go to Settings » Store Settings » Localization. Here you will be able to uncheck the currencies in the Available Currencies option that you don’t want your buyers to use (if their currency is disabled, they will make the purchase with your base FastSpring currency). Read more about the currencies and taxes in the FastSpring documentation.