node-sales-tax

International sales tax calculator for Node (offline, but provides optional online VAT number fraud check). Tax rates are kept up-to-date.

You may use it to calculate VAT rates for countries in the European Union (VAT MOSS), GST in Canada, or get VAT for countries such as China, or even Hong Kong (which has no VAT).

International tax is hard (especially VAT). This library ensures rules are enforced in the code. If you see a rule that is missing or not correctly enforced, please open an issue. Also, when you use the library, make sure to specify your origin country; as it will return full international tax rates if you don't specify it (ie. the country you invoice your customers from).

You can find the raw sales tax rates JSON file here: sales_tax_rates.json

Who uses it?

Crisp

👋 You use sales-tax and you want to be listed there? Contact me.

How to install?

Include sales-tax in your package.json dependencies.

Alternatively, you can run npm install sales-tax --save.

How to use?

This module may be used to acquire the billable VAT percentage for a given customer. You may also use it directly to process the total amount including VAT you should bill; and even to validate a customer's VAT number.

🔴 Important: in order to fetch the sales tax for a customer, you need to know their country (and sometimes state). The country (sometimes state) must be passed to all module methods, formatted as ISO ALPHA-2 (eg. France is FR, United States is US).

➡️ Import the module

Import the module in your code:

var SalesTax = require("sales-tax");

Ensure that you specify your origin country before you use the library. This will affect how international, regional and national area taxes are handled from your point of view (regional stands for the economic community, eg. the European Union).

Also, ensure that you consume correctly the charge values that get returned. It tells you if the VAT charge should be directly invoiced to the customer via the direct tag (you charge the VAT on your end), or if the customer should pay the VAT on their end via the reverse tag (see VAT reverse charge). If the charge is not direct, then the VAT rate will be 0.00 (it is up to the customer to apply their own VAT rate).

✅ Specify the country you charge from

Prototype: SalesTax.setTaxOriginCountry(countryCode<string>, useRegionalTax<boolean?>)<undefined>

🇫🇷 Charge customers from France if liable to VAT MOSS (thus international, regional and national VAT gets calculated from a French point of view):

SalesTax.setTaxOriginCountry("FR")

🇫🇷 Charge customers from France if not liable to VAT MOSS (thus international, regional and national VAT gets calculated from a French point of view):

// Set the 'useRegionalTax' argument to false if not liable to VAT MOSS (eg. not enough turnover in another regional country)
SalesTax.setTaxOriginCountry("FR", false)

🚩 Unset your origin country (use default origin, full VAT rates will be applied for all countries worldwide — this is obviously not usable for your invoices):

SalesTax.setTaxOriginCountry(null)

✅ Check if a country has sales tax

Prototype: SalesTax.hasSalesTax(countryCode<string>)<boolean>

Notice: this method is origin-neutral. It means it return values regardless of your configured tax origin country.

Check some countries for sales tax (returns true or false):

var franceHasSalesTax = SalesTax.hasSalesTax("FR")  // franceHasSalesTax === true
var brazilHasSalesTax = SalesTax.hasSalesTax("BR")  // brazilHasSalesTax === true
var hongKongHasSalesTax = SalesTax.hasSalesTax("HK")  // hongKongHasSalesTax === false

✅ Check if a state has sales tax (in a country)

Prototype: SalesTax.hasStateSalesTax(countryCode<string>, stateCode<string>)<boolean>

Notice: this method is origin-neutral. It means it return values regardless of your configured tax origin country.

🇨🇦 Check some Canada states for sales tax (returns true or false):

var canadaQuebecHasSalesTax = SalesTax.hasSalesTax("CA", "QC")  // canadaQuebecHasSalesTax === true
var canadaYukonHasSalesTax = SalesTax.hasSalesTax("CA", "YT")  // canadaYukonHasSalesTax === false

🇺🇸 Check some US states for sales tax (returns true or false):

var unitedStatesCaliforniaHasSalesTax = SalesTax.hasSalesTax("US", "CA")  // unitedStatesCaliforniaHasSalesTax === true
var unitedStatesDelawareHasSalesTax = SalesTax.hasSalesTax("US", "DE")  // unitedStatesDelawareHasSalesTax === false

✅ Get the sales tax for a customer

Prototype: SalesTax.getSalesTax(countryCode<string>, stateCode<string?>, taxNumber<string?>)<Promise<object>>

Notice: this method is origin-aware. It means it return values relative to your configured tax origin country.

🇫🇷 Given a French customer VAT number (eg. here SAS CLEVER CLOUD with VAT number FR 87524172699):

SalesTax.getSalesTax("FR", null, "FR87524172699")
  .then((tax) => {
    // This customer is VAT-exempt (as it is a business)
    /* tax ===
      {
        type     : "vat",
        rate     : 0.00,
        area     : "worldwide",
        exchange : "business",

        charge   : {
          direct  : false,
          reverse : true
        }
      }
     */
  });

Note: Clever-Cloud is a real living business from France, check their website there.

🇫🇷 Given a French customer VAT number from a 🇫🇷 French tax origin (eg. here SAS CLEVER CLOUD with VAT number FR 87524172699):

// Set this once when initializing the library (to France)
SalesTax.setTaxOriginCountry("FR")

SalesTax.getSalesTax("FR", null, "FR87524172699")
  .then((tax) => {
    // This customer owes VAT in France (as it is a business, and billing is FR-to-FR)
    // The `direct` tag is set to `true`, thus VAT should be charged
    // The `area` tag is set to `national` as the exchange is done in France
    /* tax ===
      {
        type     : "vat",
        rate     : 20.00,
        area     : "national",
        exchange : "business",

        charge   : {
          direct  : true,
          reverse : false
        }
      }
     */
  });

🇫🇷 Given a French customer VAT number from a 🇱🇻 Latvian tax origin (eg. here SAS CLEVER CLOUD with VAT number FR 87524172699):

// Set this once when initializing the library (to Latvia)
SalesTax.setTaxOriginCountry("LV")

SalesTax.getSalesTax("FR", null, "FR87524172699")
  .then((tax) => {
    // This customer owes a VAT reverse charge in their country (France), no VAT is due in Latvia
    // The `reverse` tag is set to `true`, thus the customer should apply a reverse VAT charge in their country
    // The `area` tag is set to `regional` as the exchange is done in the European Union
    /* tax ===
      {
        type     : "vat",
        rate     : 0.00,
        area     : "regional",
        exchange : "business",

        charge   : {
          direct  : false,
          reverse : true
        }
      }
     */
  });

🇺🇸 Given an United States > California customer without any VAT number (eg. a consumer):

SalesTax.getSalesTax("US", "CA")
  .then((tax) => {
    // This customer has to pay 8.25% VAT (as it is a consumer)
    /* tax ===
      {
        type     : "vat",
        rate     : 0.0825,
        area     : "worldwide",
        exchange : "consumer",

        charge   : {
          direct  : true,
          reverse : false
        }
      }
     */
  });

🇱🇻 Given a Latvian customer without any VAT number (eg. a consumer):

SalesTax.getSalesTax("LV")
  .then((tax) => {
    // This customer has to pay 21% VAT (as it is a consumer)
    /* tax ===
      {
        type     : "vat",
        rate     : 0.21,
        area     : "worldwide",
        exchange : "consumer",

        charge   : {
          direct  : true,
          reverse : false
        }
      }
     */
  });

🇱🇻 Given a Latvian customer without any VAT number from a 🇫🇷 French tax origin (eg. a consumer):

// Set this once when initializing the library (to France)
SalesTax.setTaxOriginCountry("FR")

SalesTax.getSalesTax("LV")
  .then((tax) => {
    // This customer owes VAT in Latvia (as it is a consumer, and billing is FR-to-LV)
    // The `direct` tag is set to `true`, thus VAT should be charged
    // The `area` tag is set to `regional` as the exchange is done in the European Union
    /* tax ===
      {
        type     : "vat",
        rate     : 0.21,
        area     : "regional",
        exchange : "consumer",

        charge   : {
          direct  : true,
          reverse : false
        }
      }
     */
  });

🇭🇰 Given an Hong Kong-based customer (eg. a consumer):

SalesTax.getSalesTax("HK")
  .then((tax) => {
    // Hong Kong has no VAT
    /* tax ===
      {
        type     : "none",
        rate     : 0.00,
        area     : "worldwide",
        exchange : "consumer",

        charge   : {
          direct  : false,
          reverse : false
        }
      }
     */
  });

🇪🇸 Given a Spanish customer who provided an invalid VAT number (eg. a rogue business):

SalesTax.getSalesTax("ES", null, "ESX12345523")
  .then((tax) => {
    // This customer has to pay 21% VAT (VAT number could not be authenticated against the VIES VAT API)
    /* tax ===
      {
        type     : "vat",
        rate     : 0.21,
        area     : "worldwide",
        exchange : "consumer",

        charge   : {
          direct  : true,
          reverse : false
        }
      }
     */
  });

✅ Process the price including sales tax for a customer

Prototype: SalesTax.getAmountWithSalesTax(countryCode<string>, stateCode<string?>, amount<number?>, taxNumber<string?>)<Promise<object>>

Notice: this method is origin-aware. It means it return values relative to your configured tax origin country.

🇪🇪 Given an Estonian customer without any VAT number, buying 100.00€ of goods (eg. a consumer):

SalesTax.getAmountWithSalesTax("EE", null, 100.00)
  .then((amountWithTax) => {
    // This customer has to pay 20% VAT
    /* amountWithTax ===
      {
        type     : "vat",
        rate     : 0.20,
        price    : 100.00,
        total    : 120.00,
        area     : "worldwide",
        exchange : "consumer",

        charge   : {
          direct  : true,
          reverse : false
        }
      }
     */
  });

✅ Validate tax number for a customer

Prototype: SalesTax.validateTaxNumber(countryCode<string>, taxNumber<string?>)<Promise<boolean>>

🇫🇷 Given a French customer VAT number (eg. here SAS CLEVER CLOUD with VAT number FR 87524172699):

SalesTax.validateTaxNumber("FR", "FR87524172699")
  .then((isValid) => {
    // isValid === true
  });

🇺🇸 Given an United States customer without any VAT number (eg. a consumer):

SalesTax.validateTaxNumber("US")
  .then((isValid) => {
    // isValid === false
  });

🇱🇻 Given a Latvian customer without any VAT number (eg. a consumer):

SalesTax.validateTaxNumber("LV")
  .then((isValid) => {
    // isValid === false
  });

🇪🇸 Given a Spanish customer who provided an invalid VAT number (eg. a rogue business):

SalesTax.validateTaxNumber("ES", "ESX12345523")
  .then((isValid) => {
    // isValid === false
  });

✅ Get tax exchange status for a customer (exempt + area + exchange)

Prototype: SalesTax.getTaxExchangeStatus(countryCode<string>, stateCode<string?>, taxNumber<string?>)<Promise<object>>

Notice: this method is origin-aware. It means it return values relative to your configured tax origin country.

🇫🇷 Given a French customer VAT number (eg. here SAS CLEVER CLOUD with VAT number FR 87524172699):

SalesTax.getTaxExchangeStatus("FR", null, "FR87524172699")
  .then((exchangeStatus) => {
    /* exchangeStatus ===
      {
        exchange : "business",
        area     : "worldwide",
        exempt   : true
      }
     */
  });

🇲🇦 Given a Morocco-based customer:

SalesTax.getTaxExchangeStatus("MA")
  .then((exchangeStatus) => {
    /* exchangeStatus ===
      {
        exchange : "consumer",
        area     : "worldwide",
        exempt   : false
      }
     */
  });

🇺🇸 Given an United States > Delaware-based customer:

SalesTax.getTaxExchangeStatus("US", "DE")
  .then((exchangeStatus) => {
    /* exchangeStatus ===
      {
        exchange : "consumer",
        area     : "worldwide",
        exempt   : true
      }
     */
  });

🇭🇰 Given an Hong Kong-based customer:

SalesTax.getTaxExchangeStatus("HK")
  .then((exchangeStatus) => {
    /* exchangeStatus ===
      {
        exchange : "consumer",
        area     : "worldwide",
        exempt   : true
      }
     */
  });

✅ Disable / enable tax number validation

Prototype: SalesTax.toggleEnabledTaxNumberValidation(enabled<boolean>)<undefined>

👍 Enable tax number validation (enabled by default — use only if you disabled it previously):

SalesTax.toggleEnabledTaxNumberValidation(true)

👎 Disable tax number validation (do not check tax number syntax):

SalesTax.toggleEnabledTaxNumberValidation(false)

✅ Disable / enable tax number fraud check

Prototype: SalesTax.toggleEnabledTaxNumberFraudCheck(enabled<boolean>)<undefined>

Notice: fraud check requires tax number validation to be enabled.

👍 Enable tax number fraud check (enable hitting against external APIs to verify tax numbers against fraud):

SalesTax.toggleEnabledTaxNumberFraudCheck(true)

👎 Disable tax number fraud check (disabled by default — use only if you enabled it previously):

SalesTax.toggleEnabledTaxNumberFraudCheck(false)

Where is the offline tax data is pulled from?

The offline tax data is pulled from VAT, GST and sales tax rates — ey.com.

It is kept up-to-date year-by-year with tax changes worldwide.

Some countries have multiple sales tax, eg. Brazil. In those cases, the returned sales tax is the one on services. Indeed, I consider most users of this module use it for their SaaS business — in other words, service businesses.

I bill from the EU, but sales tax is still being returned for non-EU countries!

As international tax rules can be very complex depending on your business legal structure (eg. if you run a nexus in an US state, you may owe sales tax to this US state, even if you charge from the UK); sales-tax does not void returned tax rate for international countries.

Thus, when the country is international relative to your billing origin country, you need to handle things your own way.

To make things easier for you, sales-tax returns an area parameter in the SalesTax.getSalesTax, that is either international, regional or national (this depends on your configured origin country). For regional and national areas, you can trust the returned rate. However, you may need to override all international area rates and void them all to zero; for instance if you charge from France to the United States, and you know that you do not owe sales tax in the US as you do not run a nexus company in the US.

How are tax numbers validated?

🇪🇺 Europe

European VAT numbers can be fraud-checked against the official ec.europa.eu VIES VAT API, which return whether a given VAT number exists or not. This helps you ensure a customer-provided VAT number really exists. This feature, as it may incur significant delays (while querying the VIES VAT API) is disabled by default. There's a switch to enable it.

In all cases, the syntax of the European VAT numbers get validated from offline rules. Although, it only checks number syntaxical correctness; thus it is not sufficient to tell if the number exists or not.

You can manually check a VAT number on VIES VAT number validation.

🇺🇸 United States

United States EIN (U.S. Employer Identification Number) are validated against EIN format rules.

🇨🇦 Canada

Canada BN (Business Number) are validated against BN format rules.

🏴 Rest of the world

If a country or economic community is not listed here, provided tax identification numbers are ignored for those countries (considered as invalid — so do not rely on validation methods as a source of truth).

If you need tax number validation for a missing country, feel free to submit a Pull Request.