JVZoo uses product tax categories to help determine the appropriate Sales/VAT taxes that may apply to a sale based on the type of product being sold and the customer's location.

Sellers are responsible for selecting the category that most accurately describes each product they sell through JVZoo. Properly categorizing your products helps ensure the correct Sales/VAT tax treatment is applied at checkout.

Why Product Categorization Is Important

Sales/VAT tax requirements can vary depending on both what is being sold and where the customer is located. For example, downloadable software may be taxed differently from physical merchandise, books, or online services.

JVZoo uses the product category you select, along with the customer's location and applicable tax rules, to determine the tax amount that should be collected.

Selecting an inaccurate category may result in an incorrect Sales/VAT tax amount being calculated for a transaction.

Available Product Sales/VAT Tax Categories

When categorizing your product, select the option that most closely matches what the customer is purchasing.

General Merchandise

Select General Merchandise for physical products that do not fall into one of the more specific product categories.

Examples may include:

• Physical accessories
• Household items
• Promotional merchandise
• Other general physical goods

If your product is a physical item and does not fit into a more specific category, General Merchandise will generally be the appropriate selection.

Consulting Services General

Select Consulting Services General when the customer is purchasing professional advice, guidance, or expertise.

Examples may include:

• Business consulting
• Marketing consulting
• One-on-one strategy sessions
• Professional advisory services
• Business coaching focused on consulting and strategy

This category generally applies when the primary purchase is personalized advice or professional guidance rather than a physical or digital product.

Services General

Select Services General when the customer is purchasing work or assistance performed on their behalf that does not fall under consulting services.

Examples may include:

• Done-for-you marketing services
• Website setup or maintenance
• Content creation services
• Virtual assistant services
• Administrative services
• Other professional or business services

If the primary purchase is work performed for a customer rather than advice or consulting, Services General will generally be the appropriate category.

Software Download

Select Software Download when the customer purchases software that is downloaded and installed on their device.

Examples may include:

• Desktop applications
• Downloadable software programs
• Software installed locally on a computer
• Downloadable software tools

This category generally applies when the customer receives a downloadable copy of the software rather than accessing it through a web-based service.

SaaS General

Select SaaS General (Software as a Service) when customers access software online rather than downloading and installing it on their own device.

Examples may include:

• Web-based applications
• Online software platforms
• Cloud-based tools
• Subscription-based software accessed through a browser
• Hosted software services

If customers log in to a website or online platform to use the software, SaaS General will generally be the appropriate category.

Digital Video Streamed

Select Digital Video Streamed when the customer purchases access to video content that is streamed online rather than downloaded.

Examples may include:

• Streaming video courses
• Online video training
• On-demand educational videos
• Streaming tutorials
• Video-based membership content

This category generally applies when customers watch videos through an online platform or membership area without receiving downloadable video files.

Books

Select Books when the customer purchases a physical printed book.

Examples may include:

• Printed educational books
• Physical business guides
• Printed manuals
• Paperback books
• Hardcover books

If the customer receives a physical printed book, select Books rather than Books Digital Download.

Books Digital Download

Select Books Digital Download when the customer purchases a book or similar written publication delivered electronically.

Examples may include:

• eBooks
• Downloadable PDF books
• Digital business guides
• Downloadable instructional manuals
• Electronic workbooks

This category generally applies when the primary product is written content that the customer downloads electronically.

Clothing General

Select Clothing General when the customer purchases physical clothing or apparel.

Examples may include:

• T-shirts
• Hoodies
• Jackets
• Hats
• Other apparel

If the primary product is clothing or wearable merchandise, Clothing General will generally be the appropriate category.

Digital Newsletter

Select Digital Newsletter when the customer purchases access to a newsletter or similar publication delivered electronically.

Examples may include:

• Paid email newsletters
• Subscription-based business newsletters
• Digital market updates
• Recurring industry newsletters
• Premium informational newsletters

This category generally applies when customers receive written newsletter content electronically, whether through a one-time purchase or recurring subscription.

Social Event In Person Business

Select Social Event In Person Business when the customer purchases admission to an in-person business or networking event.

Examples may include:

• Business networking events
• Professional networking meetups
• Business social events
• Industry networking gatherings
• Business conferences with a networking focus

This category should be used when the primary purchase is admission to or participation in an in-person business or networking event.

Supplements General

Select Supplements General when the customer purchases dietary or nutritional supplements.

Examples may include:

• Vitamins
• Minerals
• Protein supplements
• Herbal supplements
• Nutritional supplements
• Other dietary supplement products

If the primary product is a dietary or nutritional supplement, select Supplements General rather than General Merchandise.

Shipping

Select Shipping for charges associated with shipping or delivering physical products to customers.

Examples may include:

• Standard shipping charges
• Expedited shipping charges
• Shipping and handling fees
• Delivery charges for physical merchandise

This category is intended for shipping-related charges rather than the physical product itself.

Shipping tax treatment may vary depending on the customer's location, the products being shipped, and applicable tax rules.

Unsure Which Category to Select?

If you are unsure how your product should be classified for tax purposes, please consult a qualified tax professional for guidance.

If the appropriate classification for your product is not available in the categories listed above, please contact JVZoo Support for assistance.

How to Choose the Correct Category

Consider what the customer is actually receiving when they complete their purchase.

Always select the most specific category that accurately describes your product or service.

For example, vitamins should be categorized as Supplements General rather than General Merchandise, and a downloadable eBook should be categorized as Books Digital Download rather than a general digital product.

Choose the category based on what is actually being sold, not simply how you market or describe the offer.

Products With Multiple Components

Some products may contain more than one type of content or service.

For example, a training program could include streaming videos, downloadable materials, access to an online software platform, and live coaching.

When selecting a Sales/VAT tax category, consider the primary product or service the customer is purchasing. If components are sold separately, each should be categorized appropriately.

Certain bundled products may be subject to specific tax rules, so the primary component may not always determine the tax treatment of the entire purchase.

If you are unsure which category applies to your product, consult a qualified tax professional before selecting a category.

Seller Responsibility

Sellers are responsible for accurately categorizing their products and keeping their product information up to date.

JVZoo cannot provide individual tax or legal advice or determine the appropriate tax classification for a seller's specific product.

The category selected for your product may affect how taxes are calculated based on applicable tax rules and the customer's location.

For this reason, sellers should review their selections carefully and update them if the nature of a product changes.

Sales and VAT Tax Responsibilities

Who is responsible for reporting and remitting Sales/VAT taxes depends on how the transaction is processed.

When Using JVZoo Processing Services

If a sale is processed through JVZoo Processing Services, JVZoo will:

• Calculate and collect the applicable Sales/VAT tax from the customer
• Report the applicable taxes
• Remit the taxes collected to the appropriate tax authority

Sellers are still responsible for properly categorizing their products so the appropriate tax treatment can be applied to each transaction.

When Using Your Own Payment Processor

If you use your own payment processor to process a transaction, you are responsible for:

• Reporting applicable Sales/VAT taxes
• Remitting applicable Sales/VAT taxes to the appropriate tax authorities
• Meeting any other tax obligations that apply to your business and transactions

JVZoo does not report or remit Sales/VAT taxes on your behalf for transactions processed through your own payment processor.

Important

Product tax categories are used to help determine the appropriate tax treatment for transactions. Selecting a category does not mean that every sale of that product will be taxed at the same rate or that tax will be collected on every transaction.

Taxability and tax rates can vary by jurisdiction and customer location.

If you have questions about how your specific product should be classified for tax purposes, please consult a qualified tax professional.