Taxes on Passes (EU/UK)
Tax resources for creators outside of the United States.
The money you earn on Passes is taxed. These resources apply to creators in the European Union (EU) and United Kingdom (UK).
Are creators employed by Passes?
No. Creators are independent contractors to Passes (not employees). Passes does not manage any tax withholding, so creators must report their income to the government directly.
What is a W-8BEN?
You need to fill out your W-8BEN form before doing any payouts. This form gives us your address and contact information. It also explains that we won’t be withholding any taxes from your earnings.
What is Value Added Tax (VAT)?
Value Added Tax is a consumption tax added to the value of goods or services purchased in the EU and UK. The specific rate of tax varies by country. VAT is added to the price of the product at the time of purchase and paid directly to the relevant tax authority. In the UK, the standard rate is 20% of the product's pre-tax price.
How are fans affected by VAT?
Fans who are based in the EU incur additional processing fees to cover the cost of VAT. Passes collects VAT where applicable to be paid directly to the relevant tax authority.
How am I taxed on income from Passes?
You don’t need to take any action if your annual Passes income was less than £1,000. If you are a self-employed taxpayer in the UK or a taxable income turnover of £85,000 or more, you should consider registering for VAT. If you have a VAT number, please email help@passes.com with your VAT registration number.