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Tax rules vary by your buyer’s location, what you sell, and how much you sell. They also change over time. This help guide doesn’t provide tax or legal advice. If you’re unsure what applies to your business, talk to a tax professional. An important note before you start: choosing one of Whop’s managed tax options doesn’t, by itself, remove your own tax obligations. You remain responsible for monitoring your own nexus and for obligations from sales outside Whop. You also remain responsible for sales beyond Whop’s registered or covered jurisdictions. Tax authorities increasingly compare marketplace data with sellers’ filings, so it’s worth keeping your records current.

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How taxes work on Whop

There are two kinds of sales on Whop, and they’re handled differently:
  1. Discover sales: a buyer finds and buys your product on Whop’s marketplace (Discover). On these sales, Whop automatically handles tax in jurisdictions covered by Whop’s tax registrations.
  2. Direct sales through Whop (checkout links or embedded checkout): you choose how to handle tax. The following sections explain three options.

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Discover sales: Whop handles everything in covered jurisdictions

When a buyer purchases your product through Discover, Whop handles the tax process where marketplace laws and Whop’s registrations apply. For those sales, Whop:
  • Determines whether the sale is taxable, based on the product, the buyer’s location, and local rules
  • Calculates the correct tax and applies it at checkout
  • Collects the tax, charging it to the buyer
  • Remits the tax to the right tax authorities and files the required returns
You usually don’t need to hold, track, or file this tax yourself for these sales. Marketplace coverage doesn’t remove your other obligations. Consult your tax advisor if you have Discover sales outside Whop’s registered jurisdictions or direct sales outside Whop. The advisor can help determine whether you have nexus or filing requirements.

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Your three options

The two managed options each cost 2% per transaction. “I’ll handle tax myself” has no Whop tax fee. See the Pricing page for full details.

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Choose an option for direct sales through Whop

Whop calculates the applicable tax and applies it at checkout in the regions where you’ve added tax registrations, based on the information you provide and the transaction details. The collected tax arrives in your payout, and you’re responsible for registering where required, remitting the tax to the authorities, and filing returns. Best for you if:
  • You sell to buyers in multiple countries or outside the United States, EU, and UK.
  • You want the correct tax collected automatically.
  • You want the widest coverage available for tax computation.
Tax is only calculated where the product is taxable, and you may need to register in a jurisdiction before you can lawfully remit there. The collected tax sits in your payout, so set it aside, because you’ll owe it to the government, and you’re the one remitting it.

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Whop collects and remits tax

The hands-off option within its coverage area. For states in the United States, the EU, and the UK, Whop calculates, collects, remits, and files the tax. Best for you if:
  • Your buyers are almost entirely in the United States, EU, and UK.
  • You want minimal tax admin and don’t want to file returns yourself in covered regions.
Keep in mind: outside Whop’s coverage area (usually outside the United States, EU, and UK), Whop doesn’t collect or remit tax. Those obligations remain yours. Whop continues to expand its coverage area and will provide updates as it adds regions.

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I’ll handle tax myself

Whop stays out of tax entirely on your direct sales. You take full responsibility everywhere you sell. Best for you if:
  • You (or your accountant) already manage tax registration, collection, and filing across every region you sell in.
  • You have a specific reason to keep tax fully in your own systems.
Keep in mind: this means determining where you owe tax, registering where required, collecting the right amount, and remitting and filing it, in every applicable jurisdiction. Getting this wrong can mean back taxes and penalties.

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Frequently asked questions

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Buyer questions

Your location’s tax rules require sales tax for this purchase. Whop adds any required sales tax at checkout based on your location and purchase. If sales tax applies to your order, you’ll see it before completing payment.
No. Sales tax is a government tax, not a Whop fee. When Whop collects sales tax, Whop remits 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 the 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). Whop Support will review the order details and escalate for investigation if anything looks incorrect.
When Whop refunds an order, Whop generally refunds and adjusts any applicable sales tax 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 Whop Support can review available options.
Whop Support can explain how Whop handles sales tax for Whop Tax Service transactions but 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 questions

Not for jurisdictions where Whop holds tax registrations. In these jurisdictions, Whop acts as the marketplace facilitator and handles tax calculation, collection, and remittance, no matter which option you’ve chosen for your direct sales.
It depends on your tax settings. You choose whether your prices are tax-inclusive (tax is part of the displayed price) or tax-exclusive (Whop adds tax at checkout on top of your price).
Order receipts and details show sales tax when it applies. Sellers can also use available reporting and exports to view tax amounts by order.
Your option determines how sales tax affects your payout. For Discover sales or under “Whop collects and remits tax,” Whop keeps tax separate from your earnings and remits it. Under “Whop collects tax, I remit,” Whop includes collected tax in your payout for you to remit, so set it aside. Share an order number with Support to confirm how tax appears in the order and payout details.
Whop doesn’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. If a tax authority requests additional documentation, Whop 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.