U.S. Federal Tax

If you are using Vonza Payments, for tax purposes you will be treated as an independent contractor. This is because the funds are paid by the student to Vonza, and then Vonza pays you (and your affiliates).

This means that, as is the case with all independent contractors, you (whether you are an owner or affiliate) will be issued a 1099 if your earnings through us exceed $100. We will request a W-9 from you and that information will be used to send your 1099. This only applies if you are a U.S. person (a term inclusive of citizens, resident aliens, and qualifying entities).

If you are a foreign person, you will be required to submit Form W-8BEN or Form W-8BEN-E.

NOTE: If you are using custom gateways through Stripe Connect or PayPal, you are fully responsible for any tax reporting related to your platform (including issuing forms to affiliates if necessary). You will not receive any forms from Vonza.

U.S. State Tax

Vonza does not handle U.S. state sales taxes.  

If you find that you need to add additional taxes for your state, you may wish to add an average tax amount to the base purchasing price for the course, and then save that amount to pay your taxes.

If you export a CSV of your transactions, you can see which zip codes your students have purchased your course from. This may assist in figuring out how much state tax you may or may not need to pay.

PS: These are general recommendations. Vonza cannot not give tax or financial advice and is not liable for any losses or tax liabilities due to actions taken (or not taken) based on these recommendations. Consult a local tax professional when planning your taxes.