Skool VAT FAQs
Disclaimer: This article is neither legal nor tax advice. We recommend that you speak to your tax advisor for further questions.
VAT regulations require platforms and marketplaces that electronically authorize payment and handle delivery/download of electronic services to collect, report, and remit VAT. Skool is considered a qualifying platform and marketplace under these regulations and is responsible for collecting/remitting VAT.
Q: How does Skool collect VAT?
A: Members will have VAT added to their payments in jurisdictions where Skool collects the tax. VAT charges are processed and remitted via Skool. Creator earnings won't be affected by the VAT we collect, as it’s in addition to the price that you set.
Q: Where can members see the VAT?
A: VAT will be listed and calculated for members when they get to the checkout page of the joining process or the one-time payment purchase.
Q: Can I choose not to charge VAT for my group? Or make it inclusive?
A: No. This is platform-wide and not a creator option.
Q: Will this affect existing memberships?
A: No, it's for new member subscriptions and new one-time purchases moving forward.
Q: Can the price displayed include VAT on the About page?
A: Most regions around the world show tax at checkout, but this has been noted for further consideration.
Q: Is it being charged at the customer’s actual member-state VAT rate rather than a flat 20%?
A: Yes, it’s based on the member state (region), and will vary from 17% to 27%.
Q: Is Skool acting as the merchant of record on the transaction?
A: Yes. Skool is MoR.
Q: Do US groups have to track VAT for EU clients/members?
A: No. EU members are paying Skool directly. We collect tax from EU members and remit it to the respective government. Creators in the US receive a net payment from us as a payout.
Q: Is the payout subject to VAT?
A: No. Payouts are post-tax payments, as in, they are NET payments from Skool to the creator.
Q: Can the members add a VAT ID? And would that change the collection?
A: Yes. A valid VAT ID can be added during checkout, which indicates that they are a VAT‑registered entity, which can affect how VAT is applied and reported/calculated.
Notice the $11.90 charge changing back to $10.