🧾 Assign your products ‘taxable categories’, from eBooks to Web Hosting
Our latest release lets you assign ‘taxable categories’ - such as ‘SaaS’ or ‘eBook’ - to your products and subscriptions. Selecting the right category lets Paddle charge tax rates specific to your products.
Digital products are taxed with varying rates around the world, not just based on geography or whether the sale is B2C or B2B, but also what type of product is being sold. There are thousands of categories out there, but Paddle lets you select from and sell the following:
- Standard Digital Goods: Pre-written downloadable software to be installed on a local machine, like Excel
- Digital Goods: Non-customizable digital files (not software), like digital artwork or online video tutorials
- eBooks: Digital books sold with permanent rights for use
- SaaS: Online software where continuing access is usually paid for with subscriptions
- Web Hosting: Cloud storage or services for information, assets, or IP
Once assigned, Paddle will update the tax charged on relevant payments. If your products are currently mis-categorized, changing this to the correct option could even improve your conversions. For example, eBooks are often subject to lower tax rates, meaning customers would pay less for your product.
Head to the new Catalog > Taxable Categories page to request the use of different categories from our team, and then update your products and plans. You can also read our blog post for more details or contact our team with any questions.
