Sales tax & VAT

Whop is Merchant of Record (MoR) and handles VAT (sales tax).

What exactly is a Merchant of Record?

At Whop, we act as merchant of record (MoR), which essentially means we're the legal entity responsible for selling goods or services directly to end users. Whenever a purchase is made, all payment processing and related responsibilities fall under the jurisdiction of the Merchant of Record – that's us. This entails managing sales tax collection, processing refunds, handling chargebacks, adhering to local consumer laws, and ensuring PCI compliance.

When you choose to use Whop, we prioritize minimizing operational complexities for you. We take on the responsibility, allowing you to focus on the core tasks of selling and enhancing your offerings.

By using Whop Payments, you automatically choose Whop as your Merchant of Record. If you haven't already, we encourage you to initiate the setup process for your Whop Payments account here.

Sales Tax & VAT

Whop is a merchant of record (MoR) and handles VAT (sales tax), incurring payment liability for all digital products sold on our platform.

Customers who purchase products on Whop from creators using Whop as their Merchant of Record (MoR) will pay sales tax if they are from the EU or the UK. However, Whop will automatically remit the taxes on behalf of your business, so you do not have to worry about a thing.

Using your own Stripe account

If you have already linked your own Stripe account before we introduced Whop Payments, you can still choose to collect tax yourself. However, you will be responsible for remitting the taxes. Using your own Stripe account, you can additionally enable customers to provide their VAT ID on checkout so that it will show up on their invoice. To do this simply head to your ‘Settings’ page, select the ‘Legal’ tab and toggle on the collection of VAT ID for customers.

If you are using your own Stripe account, you can choose inclusive or exclusive tax. Exclusive tax will be added on top of the price for the customer at checkout, Inclusive tax will just make it appear on the customer's invoice. You can export this data via the ‘Payments’ page.

💡 Looking for more help? Reach-out to our 24/7 live chat support team here.