Substack Integration with Stripe Tax
Yes, Substack integrates with Stripe Tax. This feature helps calculate the correct tax amount at the point of sale on Substack, ensuring compliance and simplifying tax management.
How Does It Work?
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Tax Calculation: Subscribers can enter a VAT/Tax ID and their address or credit card zip code on the subscription plan page. Tax is collected based on their location.
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Fees: Stripe Tax fees start at 0.5% per transaction in registered regions, decreasing to 0.4% for monthly transactions exceeding $100,000.
Note: Anyone accessing the secret draft link can view your post, even if unpublished. To remove access, click "Reset the link". Paywalls will not be visible through this link.
Benefits of Stripe Tax Integration
- Compliance: Helps writers meet tax obligations, especially EU VAT compliance.
- Simplified Remittance: Provides detailed reports on both Substack and Stripe platforms.
- Regulation-Compliant Invoices: Supports reverse charge on EU VAT when subscribers enter their VAT/Tax ID.
Subscribers charged tax can download detailed invoices from their payment receipt emails.
Getting Started with Stripe Tax
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Enable Stripe Tax: Visit Stripe Tax Settings on your Stripe account.
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Select Tax Category: Choose "General - Electronically Supplied Services" as the default category.
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Register for Tax: If your Substack exceeds a tax threshold, register with local authorities as needed. Stripe Tax monitors your subscriptions for compliance.
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Enable Stripe Tax: Once registered, toggle to enable Stripe Tax.
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Contact Substack Support: Reach out to Substack Support to activate Stripe Tax for your publication.
Viewing Collected Tax
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On Substack: Go to your publication's Settings page, under the Payments section, and request a new "Subscription invoice report". Select a time period for export.
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On Stripe: Access the Tax section on your Stripe Reports Dashboard for itemized or summarized transaction data.
This integration streamlines tax compliance and management, making it easier for Substack writers to handle their tax responsibilities effectively. If you have more questions or need assistance, feel free to reach out!