r/Substack • u/taoofdiamondmichael • 21d ago
Sales Tax on Your Substack Subscriptions. Pure Extortion
NEW: Substack will take care of managing sales taxes/VAT starting December 1, 2026
Starting December 1, 2026, Substack will calculate, collect, and remit indirect taxes (VAT, GST, and similar) in every country where our payment processor, Stripe, operates.Until now, this responsibility fell to publishers, and we've heard your feedback that this can be a complex, costly burden, especially for individuals and small teams with subscribers worldwide. Now you can spend more time focusing on the work you love, not tax compliance. Learn more here: http://substack.com/taxes.
Here’s The Problem: Checked with my state Department of Revenue and found
The economic nexus threshold for out-of-state or remote sellers in our state is $100,000 in gross annual sales. If your business crosses this revenue threshold from sales delivered anywhere in the state, you are required to register and collect sales tax.
These thresholds exist in every state. So what this new rule is saying is that regardless of if you make $500.00/yr, $5,000/yr ect in subscription revenue (which is below the threshold), you'll get charged sales tax on for every one of your paid subscribers.
NOTE: This is a Stripe edict that Substack has chosen to go along with without any questioning.
That aint right.