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As a seller, you may be required to charge taxes on your sales and report and remit those taxes to the appropriate government authorities. Tax laws vary by jurisdiction, product type, and buyer location and may change over time. Whop helps handle indirect tax collection in certain situations. In other cases, you are responsible for handling taxes yourself. This article explains when Whop collects and remits tax on your behalf and when sellers are responsible.
Whop provides tools and, in some cases, tax handling to help with compliance. However, you are responsible for understanding and meeting your tax obligations. If you’re unsure what applies to your business, consider consulting a tax professional.

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How taxes work on Whop

Tax handling depends on how a sale occurs. Sales may come through Discover, where a customer finds and makes their purchase on Whop’s marketplace, or direct-to-consumer, where a sale is made directly by the merchant to the customer.

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Marketplace sales

When a transaction occurs through Discover, it is generally treated as a marketplace sale. For Discover-attributable sales, Whop may be responsible for sales or other indirect tax and will, where required by law:
  • Determine whether the transaction is taxable based on product type, buyer location, and state or country specific rules
  • Calculate and collect applicable sales tax or similar indirect taxes at checkout
  • Remit collected taxes to the appropriate tax authorities
For Discover sales, Whop handles indirect tax collection and remittance in jurisdictions where it is legally required to do so. No extra action is needed from you for those Discover transactions.

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United States

This section applies if you sell to buyers in the United States.

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Discover sales

Whop collects and remits applicable U.S. sales tax for eligible Discover-attributable transactions where required by law. Starting March 1, 2026, Whop will collect and remit U.S. sales tax on eligible Discover sales in the following jurisdictions:
ConnecticutDistrict of ColumbiaGeorgiaHawaiiIllinoisIndianaKentuckyLouisianaMarylandMichiganNew JerseyNorth CarolinaOhioPennsylvaniaSouth CarolinaTexasWashingtonWest Virginia

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Non-Discover sales

For sales outside Discover, you are responsible for determining where you have sales tax obligations, collecting the correct tax, and remitting it to the appropriate state or local authorities.
In the U.S., sales tax requirements differ by state and sometimes by city or county. Make sure your tax setup reflects where your buyers are located.

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Non-U.S. / foreign taxes

Whop currently maintains indirect tax registrations in certain non-U.S. jurisdictions, including the European Union and the United Kingdom. Under Whop’s current operating model, Whop generally collects and remits applicable indirect taxes on transactions processed through the platform. Foreign indirect tax collection and remittance are administered through third-party service providers, including Stripe and Taxually. Tax invoices issued for these transactions identify Whop as the party handling indirect tax.
In many countries, indirect taxes are determined by where the buyer is located, not where you’re based. If you are unsure what applies, consider consulting a tax professional.

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Your responsibilities under Whop’s Terms of Service

Under Whop’s Terms of Service, all sellers are responsible for determining which taxes or fees apply to their products and services and for assessing, collecting, reporting, and remitting applicable taxes. Where required by law, Whop may withhold, collect, and remit taxes on your behalf.

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FAQs

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Buyer FAQs

You’re being charged sales tax because the tax rules in your location apply to this purchase. Based on where you’re located and what you’re buying, sales tax may be required and is added at checkout. If sales tax applies to your order, you’ll see it clearly at checkout before completing payment.
No. Sales tax is a government tax, not a Whop fee. When Whop collects sales tax, we remit it to the appropriate tax authority as required.
Not necessarily. Whether tax applies depends on the delivery address and whether the item/service is taxable under local rules. If it applies, it will appear during checkout.
Starting March 1, 2026, Whop collects and remits sales tax for applicable Discover sales in the jurisdictions listed in our Help Center when required. Outside those jurisdictions (or for non-taxable items), sales tax may not appear.
Share your order number and the delivery ZIP code (and a screenshot of checkout if possible). We’ll review the order details and escalate for investigation if anything looks incorrect.
If an order is refunded, any applicable sales tax is generally refunded and adjusted along with the purchase (based on the refunded amount and transaction details).
Tax exemption rules vary by jurisdiction and may require documentation. Contact Support with your order number (if available) and any exemption documentation so we can review what options are available.
We can explain how sales tax is handled for Discover transactions, but we can’t provide personalized tax advice. If you need guidance for your specific situation, consider speaking with a tax professional.

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Seller FAQs

For Discover sales, when Whop is required to collect sales tax, Whop handles tax calculation, collection, and remittance for those transactions. No additional action is needed for those specific Discover orders.
For Discover sales, when Whop is responsible for collecting sales tax, the tax is calculated and presented to the buyer at checkout in addition to the listed price.
Possibly. Even if Whop collects and remits sales tax on certain Discover sales, sellers may still have tax obligations in other situations (for example, non-Discover sales or other tax types). Requirements vary, so consider consulting a tax professional.
For non-Discover sales (such as checkout links, embedded checkouts, or other external/direct channels), the seller is generally responsible for determining applicable taxes, collecting them when required, and filing/remitting to tax authorities.
Sales tax, when applied, is shown on the order receipt and order details. Sellers can also use available reporting and exports to view tax amounts by order.
Sales tax is collected from the buyer (when applicable) and is separate from seller earnings. If you have a question about a specific payout, share the order number and we can help confirm how it appears in the order and payout details.
We don’t provide copies of confidential tax returns or filings. Sellers can use transaction receipts and order records showing tax collected, plus the Help Center reference page listing where Whop currently collects and remits sales tax on Discover sales. If a tax authority requests additional documentation, we can escalate the request for review.
Tax authorities set filing schedules (monthly, quarterly, etc.), which can vary. Whop remits taxes on the schedule required by the relevant tax authority.