Yes! If you've enabled Stripe Tax, this feature can help determine and calculate the right amount of tax at the point of sale on Substack. Tax is automatically calculated for transactions in a registered region.
How does it work?
Subscribers can enter a VAT/Tax ID and their address or their credit card zip code on the subscription plan page and tax will be collected based on their location.
Note: Per Stripe about their fees, "Stripe Tax starts at 0.5% per transaction where you’re registered to collect taxes, and drops to 0.4% per transaction when you process more than 100,000 USD in a month."
This integration can help writers be compliant with their tax obligations, especially for EU VAT compliance, and simplify the remittance process by providing reports on both the Substack and Stripe platform.
This integration provides regulation-compliant subscription invoices including support for reverse charge on EU VAT when a subscriber enters their VAT/Tax ID on the subscription plan page.
If a subscriber is charged a tax, they'll be able to download a detailed invoice showing the tax amount from a link in their payment receipt email.
How do I get started?
Here, we'll provide a brief overview on what steps you need to take to enable this integration. For more detailed steps, please refer to Stripe's setup guide.
1. You'll need to enable Stripe Tax on your Stripe account: https://dashboard.stripe.com/settings/tax
2. Follow the onboarding steps by first selecting your tax category. The default tax category will be "General- Electronically Supplied Services".
3. Add a tax registration–if your Substack exceeds a tax threshold in a country or U.S. state, you'll have to register with the local tax authority before you can add tax to subscriptions. Stripe Tax monitors your subscriptions so you'll know where and when you need to register.
4. Once you've added a tax category and tax registration, click on the toggle to enable Stripe Tax.
5. To enable the Stripe Tax integration on your Substack publication, contact our Support team and request that Stripe Tax be turned on for your publication.
Where can I see how much tax has been collected on my subscriptions?
On Substack:
Head to your publication's Settings page and scroll to your Payments section. Next to "Subscription invoice report", click on "Request a new report".
Select a time period for the subscription invoice export.
A PDF earnings report will be generated which includes the total tax for all your subscriptions in your selected time period.
On Stripe:
On your Reports dashboard, click on Tax. This section can be found directly at this link: https://dashboard.stripe.com/tax/reporting
Here you'll be able to download an itemized or summarized report of your publication's Stripe Tax transaction data.