Understanding Taxes
Disclaimer: Please note that Whop is not qualified to provide financial or tax advice. We strongly recommend consulting with a Certified Public Accountant (CPA) or a professional tax advisor for guidance on your specific financial and tax-related matters.
What taxes does Whop file on my behalf, if they are my Merchant of Record (MoR)?
Whop, as your Merchant of Record, will strictly handle the filing of your sales taxes. However, you, as the seller, will still be responsible for all other tax filings you are required to submit. This includes, but is not limited to, income tax, franchise tax, and more.
What tax forms can I expect to receive when Whop is my Merchant of Record (MoR)?
For each payment processor you choose to enable, Stripe, PayPal, or Whop Payments, you must meet a minimum threshold by the end of January 2024 to receive a 1099-K.
The minimum threshold for receiving a 1099-K tax form from Stripe, PayPal, and Whop Payments is $20,000 in gross receipts and at least 200 transactions.
What is VAT and why is this showing up on my checkout links?
VAT (Value-Added Tax) is a consumption tax applied to any goods and services (including digital) in the EU and UK. It only shows up at checkout IF the user purchasing your product is based in the EU/UK. Whop is required to charge customers VAT at checkout and remit it on your behalf as the Merchant of Record. Learn more about VAT regulations here.