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Tax rules generally vary by where your buyer is located, what you sell, and how much you sell, and they change over time. This is a help guide, not 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 does not, by itself, eliminate your own tax obligations. You remain responsible for monitoring your own nexus and for any tax obligations arising from sales you make outside Whop or outside the jurisdictions where Whop is registered or covered. Tax authorities increasingly cross-check marketplace data against sellers’ own filings, so it is worth keeping your own 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 handles tax automatically in the jurisdictions where Whop is registered for tax purposes.
  2. Direct sales through Whop (checkout links or embedded checkout): you choose how tax is handled. There are three options, explained in detail below.

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Discover sales: Whop handles everything in covered jurisdictions

When a buyer finds and purchases your product through Whop’s marketplace (Discover), Whop takes care of the tax process wherever the law requires the marketplace to handle it and Whop is registered. 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 generally don’t need to hold, track, or file this tax yourself for these sales. Keep in mind, though, that marketplace coverage does not extinguish all of your obligations. If you have Discover sales outside the jurisdictions where Whop is registered, or direct sales outside of Whop, please consult your tax advisor about whether you have nexus or filing requirements in any jurisdiction.

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Your three options

What Whop doesWhat you doWhere it works
Whop collects tax, I remit (Recommended)Calculates the applicable tax at checkout and includes the collected tax in your payout.Register where required, then remit the tax and file returns.All US states and territories, plus the international jurisdictions on Numeral’s coverage list (90+ countries).
Whop collects and remits taxCalculates and collects the tax at checkout, then remits it and files the returns.Under our current business model, generally, you need to evaluate tax requirements for jurisdictions outside the US, EU, and UK.The US states and territories, EU, and UK.
I’ll handle tax myselfNothing.Everything: register, collect, remit, and file the tax yourself, everywhere you sell.You handle every jurisdiction.
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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Which option is right for your 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 US/EU/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 US states and for the EU and UK, Whop calculates, collects, remits, and files the tax. Best for you if:
  • Your buyers are almost entirely in the US, 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 (generally outside the US, EU, and UK), Whop does not collect or remit tax, and those obligations remain yours. However, Whop is continuously expanding its coverage area, and we will provide updates as new regions are supported.

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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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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 Whop Tax Service 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

Not for jurisdictions where Whop is registered for tax purposes. For 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 (tax is added at checkout on top of your price).
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.
It depends on your option. When Whop remits the tax (on Discover sales, or under “Whop collects and remits tax”), the tax is separate from your earnings. With “Whop collects tax, I remit,” the collected tax is included in your payout for you to remit, so set it aside. Either way, share an order number and we can 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. 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.