⚠️ Disclaimer: Please note that Whop is not qualified to provide financial or tax advice. We strongly advise consulting with a Certified Public Accountant (CPA), Chartered Accountant, or another professional tax advisor for guidance on your specific financial and tax-related matters.
What tax forms can I expect to receive?
Whop will send a 1099-K to every earner that is based in the US that meets the minimum gross receipts threshold by the end of the reporting year. If you have enabled any other payment processors, such as PayPal, you may receive a separate 1099-K from each of them as well.
The thresholds set by US Tax authorities are as follows:
Reporting Year | Threshold (Gross Receipts) |
2024: | $5,000.00 |
2025: | $2,500.00 |
2026 and Beyond: | $600.00 |
As long as we have all of the required information – Legal name, mailing address, and TIN – you will receive your form by January 31st of the following year.
At this time, Whop does not send any forms to earners outside of the US. If you require any additional information or reporting, reach out to support.
Sales Tax, GST, and VAT: General Information
Whop is the Merchant of Record (MoR) and the Deemed Supplier for all transactions using Whop Payments. This means that Whop will handle the collecting and remitting of US sales tax, GST, and VAT for all transactions.
If you have enabled any other payment processors, you may be required to register and remit sales tax, VAT, and/or GST depending on your location, the location of your customers, and your sales volume.
Earners on the platform are responsible for all other tax filings required in their taxing jurisdiction.
What is VAT?
VAT (Value-Added Tax) is a consumption tax applied to any goods and services (including digital) in the EU, UK, and many other taxing jurisdictions. The VAT requirement and rate is determined by the end customer’s location, regardless of where the seller is located.
As the Merchant of Record, Whop is considered the Deemed Supplier for all purchases made by EU and UK consumers, so we will collect and remit taxes on your behalf.
Reporting and Invoice Requests
Reach out to support for any specific reporting needs or copies of VAT compliance invoices.
Pricing Options and Taxes
The default pricing strategy on Whop is exclusive of taxes and fees. This means that your customers will be charged the price you set plus any taxes or fees, but you will receive the full sales price.
EXAMPLE: |
|
Price: | $100.00 |
Taxes: | $20.00 |
Customer Pays: | $120.00 |
Seller Receives: | $100.00 |
You have the option to change your pricing strategy to include taxes and fees. This means that your customers will be charged the price you set, and any required taxes and fees will be taken out of the payment you receive.
EXAMPLE: |
|
Price: | $100.00 |
Taxes: | $20.00 |
Customer Pays: | $100.00 |
Seller Receives: | $80.00 |
You can adjust your pricing strategy in the creator dashboard under Payouts > Business and tax details.
