Sales tax on Gumroad

Before selling on Gumroad, you should speak to your tax attorney or accountant to ask them what your liability may be for selling on Gumroad. You can direct them to our Term of Service for a better understanding of how we operate legally. 

Gumroad is generally the seller of record on all sales made to your customers. That means that we are generally required to charge and remit sales tax, and you are not responsible for it. Unless we are required by law to add sales tax to digital products, we do not. To simplify things:

If you live in the U.S.A.

We do not add sales tax to digital products. All we can do is help you calculate sales tax on sales to the states where you have nexus. You can add sales tax to physical products in the US where you have nexus, though. More on that here.

What does this mean?

You set a state that you have "nexus" in, in your Settings menu, and when you make sales to that state, we calculate how much you owe the state in sales tax.

Where can I see that information?

You go to your Customers tab and export a CSV. Here's how to do that.

If you live in the E.U. or the UK

Don't worry about sales tax.

If your product is sold to a customer in the EU or the UK, Gumroad does charge and remit VAT on digital items sold, because we are technically the seller on record. You are not responsible for it. 

One more time for the people in the back: You. Are. Not. Responsible. For. Charging. Or. Reporting. VAT.

We do not charge or remit VAT on physical products sold to customers in the EU/UK. You can learn more about our VAT dealings here.

If you have questions about how to report your income, please speak to an accountant or tax attorney. 

If you live in Canada

We do not calculate or remit Canadian sales tax, nor are we planning on adding this feature anytime soon. Sorry.

If you live in Australia

We do collect and remit a 10% GST for every sale to a customer from AU. Physical products and Custom Delivery products are exempt from AU GST.

If you live in India

You can allow us to charge GST to Indian customers by setting a custom tax rate in your Settings

That money sits in your balance and you are responsible for remitting it to the Indian government. 

If you live anywhere else not previously mentioned...

We do not calculate or remit sales tax for your country or region, sorry. 

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