Effective July 23, 2021, Teachable has rolled out country-specific taxes. This means that Teachable will calculate, collect, and remit applicable taxes on purchases made by students over Teachable Payments and Monthly Payment Gateway. This is a 10% GST tax.
What is this tax?
In general, purchases made by customers may be subject to the country-specific tax. This tax applies to any merchant selling a product or service (including digital products like an online course) to a customer based in a market where the tax is applicable.
So what now?
All purchases through Teachable will be charged the country-specific tax. If you have a valid tax ID at the time of purchase, you will be allowed to enter the tax ID upon checkout and will not be charged the tax. This option will be made available at checkout if applicable.
If you made a recurring purchase—such as the Pathway payment plan—prior to the launch of this feature, you will not be charged applicable taxes retroactively, however, you will be charged going forward for tax on each transaction in a recurring payment plan, when applicable.
Teachable will charge tax according to the location of the student, when applicable. If the student has a billing and shipping address is the U.S., taxes would be charged according to the U.S. state that they reside in.
If a student feels they have been taxed incorrectly they should submit a refund request to firstname.lastname@example.org. The refund request should include a copy of the purchase receipt showing the tax paid and order ID, as well as a copy of their tax ID certificate or proof of tax exemption regulation.