This article applies to:
-
Beat Sellers
- Professional Plan
- Growth Plan
- Starter Plan
Overview:
In this article, you will learn more about the Sales Tax for BeatStars Subscriptions and content transactions (Marketplace & Pro Page).
Frequently Asked Questions (FAQs)
Understanding Taxes and Fees on BeatStars
BeatStars collects government-mandated sales taxes on Marketplace, Pro Page, and Blaze Player transactions. Any required sales tax or Value Added Tax (“VAT”) will appear at checkout. On Marketplace transactions, BeatStars also collects a 12% Service Fee.
This total amount (including the Service Fee for Marketplace sales) is combined by PayPal and labeled as a “Partner Fee” or “Partner Commission.”
The amount collected by BeatStars is automatically distributed to relevant parties:
- The Service Fee amount (if applicable) is directed to BeatStars.
- The Tax or VAT amount is directed to BeatStars, and then distributed to the proper tax authorities.
Buyers operating as a business in the UK or EU may also receive a reverse charge VAT invoice with their purchase. This will be included in their purchase receipt email from BeatStars.
IMPORTANT NOTE: If you were remitting VAT yourself as a BeatStars seller prior to April 1, 2025, you no longer need to do this.
Partner Fee
On your PayPal invoice, you’ll see a line item "Partner Fee" (or “Partner Commission” for those with a PayPal Business account). This encompasses the total fees associated with an order. It includes the 12% Service Fee for Marketplace transactions, along with all applicable sales taxes for the order.
This will appear as a line item on your PayPal receipt, describing the total costs we’ve deducted from your buyer's payment. Here’s an example of a Marketplace transaction:
The Partner Fee is $3.20 and includes the following:
- BeatStars Service Fee (12% applied to the item price).
- All applicable sales taxes.
The line item titled “PayPal Fee” is PayPal's processing fees that are taken from the Gross Amount and directed to PayPal. For more information about PayPal fees, visit the PayPal Merchant Fees page.
IMPORTANT NOTE: For Pro Page and Blaze Player transactions, the Partner Fee only includes applicable sales taxes. BeatStars has never collected a Service Fee for Pro Page or Blaze Player transactions.
Seller Subscriptions
BeatStars also collects any required sales tax and VAT on Starter, Growth, and Professional subscriptions. This amount will appear at checkout and is distributed to all relevant tax authorities. You will see this amount included in your purchase receipt.