Why Collect Taxes with Uscreen and Stripe Tax?
Collecting taxes ensures compliance with local regulations and streamlines your business operations. With Uscreen's integration with Stripe Tax, you can automate tax calculations and apply them directly to purchases, reducing manual effort and the risk of error.
Key Features of Stripe Tax Integration
Automatic Tax Calculation: Stripe Tax calculates and applies taxes at checkout based on user location.
Ease of Use: Taxes are enabled for all Stripe and PayPal transactions on Uscreen.
Fees:
Stripe charges 0.5% per transaction where tax is applied. Transactions without tax remain free of this fee.
PayPal transactions are charged at $0.50/transaction.
Rather than paying per transaction, you can also set up a flat rate pricing structure for Stripe Tax within your Stripe account.
Built-in Address Collection: Users provide their address during checkout to determine tax applicability.
How to Enable Stripe Tax
Contact Uscreen Support: Ensure Stripe Tax is enabled for your account.
In Stripe, enable tax collection for regions where your business operates.
Once activated, tax will apply automatically to existing and new subscriptions.
Note on Subscriptions
Enabling tax may cause subscription prices to change, which could lead to payment failures due to banking policies. It’s important to inform your subscribers about these changes in advance. This is beyond Uscreen’s control and can occur with any price change for users. Banks set their risk tolerance for such situations.
Tax Collection for Canadian-based Businesses
Understanding Tax Obligations
Tax collection in Canada varies by province and depends on whether digital goods are taxable. To ensure compliance:
Research specific provincial tax laws using terms like “[Province Name] tax laws on digital goods.”
Consult a tax professional to clarify your obligations and ensure accurate tax handling.
Tax Collection for US-based Businesses
Understanding Tax Obligations
Tax requirements in the US differ by state. While some states tax digital goods, others do not. To stay compliant:
Research your state’s tax laws using terms like “[State Name] tax laws on digital goods.”
Seek advice from a tax professional to confirm the applicability of taxes and maintain compliance.
Frequently Asked Questions
Are Video Businesses Always Taxable?
In Canada, video businesses may be classified as suppliers of Intangible Personal Property (IPP) and subject to GST/HST.
In the US, taxability depends on state legislation, which is evolving as digital goods gain prominence.