How to Turn on Stripe Tax

This is only applicable to Direct authors


Last Update 4 months ago

If you are a Ream Managed author, Ream handles all Sales Tax and VAT collection, filing, and remittance for you so this guide is not applicable to you. 

If you are a Direct author, Stripe can automate the collection of Sales Tax and VAT and charge your readers these fees in excess of your tier price so you don't have to pay these fees out of pocket.

It's called Stripe Tax and it's a free setting you can turn on in your account here:

*Note: Please make sure you are signed into your Stripe profile for Ream when turning Stripe Tax on.

For more on how nexus works and determining if and when Sales Tax and VAT are applicable to you as an author, read this article:

When you turn this on, it monitors each of your tax jurisdictions and lets you know when you hit a limit. 

When this happens, it starts collecting those fees in excess of your tier price, automatically from your readers. When Sales Tax and VAT collection do apply, there will be a 0.5% fee charged per transaction. However, this fee is not present on transactions where Sales Tax and VAT collection don't apply.

It is your responsibility to file, remit, and register for tax payments in those jurisdictions. Stripe Tax will give you links on where to go to do this and reminders when you need to register.

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