This guide outlines where Kickstarter automatically collects and remits taxes on your behalf through the Pledge Manager, versus where creators are responsible. For scenarios where creators remain responsible, Kickstarter offers an optional tax collection service to simplify compliance.
How Tax Responsibility is Determined
Tax collection and remittance responsibility related to the supply of goods depends on several factors working together:
- Backer ship-to location - Where your item is being delivered
- Creator location - Where your business is registered
- Product ship-from location - Where items are fulfilled from
- Product value - With specific thresholds (€150 for EU, £135 for UK)
When Kickstarter Handles Tax Collection and Remittance
The Pledge Manager automatically collects and remits taxes where the platform has an obligation to collect and remit transaction tax. This covers all backer transactions in the U.S and Canada, and any across the UK and EU where we are the deemed supplier.
These obligations are outlined under the following laws and regulations in different regions:
- U.S.: Marketplace facilitator laws
- Canada: Digital platform operator GST/HST obligations, and local provincial goods and services tax
- UK & EU: Deemed supplier regulations
In these cases:
- No additional action required from creators for tax compliance
- Automatic collection & remittance of appropriate tax amounts
- Built-in coverage that handles collection and government remittance seamlessly
- The Pledge Manager will provide tax reporting detailing tax collected on your transactions for any information returns that may be required by local tax authorities or where you otherwise have tax obligations.
When Creators Remain Responsible
For scenarios where tax laws designate creators or backers as the responsible party, creators maintain tax obligations. To support compliance, Kickstarter offers an optional additional tax collection service (that you can opt-in to in the Pledge Manager set-up) where:
- Any creator-responsible taxes will be collected on applicable purchases made in the Pledge Manager
- Taxes are disbursed to your Stripe Connected Account along with your other Pledge Manager funds
- You handle the remittance to relevant tax authorities
- Once you have closed your Pledge Manager, Kickstarter will provide tax reporting detailing tax collected on your transaction denoting that tax is collected and the creator is the Tax Responsible Party to support your filing activity.
Understanding Your Specific Scenarios
The table below shows who is responsible for tax collection and remittance based on your specific combination of backer location, creator location, product shipping location, and product value. This will help you understand what to expect for each type of transaction in your campaign.