What are the rules around collecting taxes?
It's going to come down to where you operate out of and whether that particular state charges tax on digital goods. There's some jargon around this when it comes to each state so it's best to Google search something like "[Your State] tax laws on digital goods". Of course, a tax professional will be your best source of information on this.
NOTE: These are very general recommendations. We're not tax professionals here and we can't be responsible for any losses or tax liabilities due to actions taken (or not taken) based on these recommendations. Again, always consult a tax professional when planning how to manage collecting taxes.
If you're worried about collecting VAT, this is based on the location of the end-user, so we do have some handy guides on VAT as well.
At this time, we recommend that if you wish to collect USA based taxes, do the following:
1. Increase your prices to account for average sales tax, which is around 7%.
2. Use only Stripe to collect payment on Uscreen. Stripe allows you to export your payments to include the postal code of the transaction. Using this information, you can determine what amount of tax you owe to which province. Navigate to your Payments, then click on Export. Select Custom under the Columns option. Then enable Card Address Zip. Finally, click on Export. Filter your zip column to sort by Zip code. Please note, that this information is not available for Paypal transactions. If you require postal code data per Paypal transaction, do not use the Paypal option.
If you do not use Stripe, Monthly, quarterly, or annually, you can email in to firstname.lastname@example.org requesting a Sales Report by Location (which includes Country & State location per purchase).
If you'd like to see a tax-based integration with Uscreen, please submit a feature request.
Are video based businesses always taxable?
Not every state taxes digital goods, but it's becoming more and more common as many states are seeing the substantial increase in revenue from digital goods so again, it's best to check where your state is currently at in regards to digital tax legislation.
So how much do I actually owe?
If you've discovered you need to collect sales tax we recommend building it into the price you charge on your storefront. Uscreen doesn't add taxes to purchased products. Buyers are always charged the amount that you set so taxes will need to be netted out of that total price.
If you set say a subscription at $10, your buyers will always pay $10, and you receive around $9.41 after Stripe fees for every sale. In a state with a 10% tax rate, you should set aside $1 to later remit, which would leave you with $7.41. You can request sales by location by simply emailing email@example.com and request this report per month or by year.
If you're using PayPal or Uscreen Payments Gateway we will hold all funds for 30 days and then payout on the 1st of the following month. If you are using Stripe, you are automatically sent this money whenever you choose to do a Payout. At the end of the year (or more frequently depending on your tax professional's advice), you should send the money that was collected as sales tax to your state's filing office. You can pay the taxes collected directly to each state, or use a tax remittance service.