At Dodo Payments, compliance with international tax regulations is a top priority. Sales tax deductions are required in many regions to comply with local laws for SaaS and digital product transactions. This guide provides a breakdown of the sales tax rates applied by Dodo Payments for different countries and product categories (SaaS and Digital Products).This document will be updated as new tax regulations come into effect or as we meet threshold limits in certain countries.
Sales tax is a mandatory compliance requirement in many countries, especially for digital transactions. To ensure compliance, Dodo Payments automatically calculates applicable sales tax based on the customer’s location and type of product being purchased. These deductions help merchants stay compliant and avoid potential legal issues or fines.
Threshold Limits: In some countries, sales tax is only applicable if Dodo Payments surpasses a specified revenue threshold. For these regions, we will begin deducting sales tax once this threshold is crossed.
Document Updates: Tax rates and regulations may change. This document will be revised periodically to reflect updated tax requirements.
Tax Rate will be applied as per the latest applicable rate at the time of the transaction. Each transaction invoice will clearly indicate the applied tax rate and merchant can use this for reference later if needed
List of Countries supported by Dodo Payments and applicable Tax Rates
The table below outlines the countries we accept payments from and the applicable sales tax rates for SaaS products and digital products across these countries
For some countries, Dodo Payments will only start deducting sales tax once a specific sales threshold is reached. Currently, countries where sales tax is listed as NA fall into this category. Once the revenue generated in these countries surpasses the designated threshold, Dodo Payments will begin deducting the applicable tax rate.
All taxes collected through Dodo Payments will be reported and remitted as per the local tax regulations of each country. This automatic tax handling ensures that merchants remain compliant without needing to handle the complexities of international tax law themselves. We will send a communication via email every year compiling the taxes remitted in each jurisdiction for complete transparency
