Legal
VAT, Tax & Withholding Policy
Effective Date: September 1, 2025 · Last Updated: September 1, 2025
Section 01
Scope of This Policy
This policy applies to:
- All paid users, including creators and brands
- All regions where Hatch is available, including the U.S., EU, UK, Canada, Australia, India, and Singapore
- All monetized activity, including subscriptions, tips, and product sales
Section 02
VAT and GST on Platform Fees
If you are located in a country that requires VAT or GST on digital services, Hatch will charge and remit the appropriate amount on platform fees as required by law.
| Region | Applies To | VAT/GST Rate | Who Remits |
|---|---|---|---|
| EU (non-business users) | Platform fees | Varies | Hatch |
| UK | Platform fees | 20% | Hatch |
| Australia | Platform fees | 10% | Hatch |
| Canada | Platform fees | 5–15% | Hatch |
| Singapore | Platform fees | 8–9% | Hatch |
| India | Platform fees | 18% | Hatch |
| U.S. | Sales tax (some states) | 0–10% | Hatch (where required) |
VAT or GST will be displayed during checkout or on invoices where applicable. For Australian users, Hatch complies with Australia's simplified GST system for digital services. GST is collected by Stripe and remitted directly to the Australian Taxation Office (ATO) — you do not need to self-remit GST on Hatch platform fees.
Section 03
VAT for Creators in the EU/UK
If you are a business user located in the EU or UK, you must:
- Provide a valid VAT number (if registered)
- Understand that Hatch will treat your revenue as business-to-business (B2B) income
- Self-account for VAT via reverse charge (if applicable)
Hatch does not withhold VAT on payouts to EU/UK business users unless legally required. If you are not VAT-registered, you may have additional reporting obligations in your jurisdiction.
Section 04
U.S. Tax Obligations
If you receive payouts through Hatch and reside in or earn income from the United States:
- You must provide tax details via Stripe Connect
- U.S. persons must submit a Form W-9
- Non-U.S. persons must submit a Form W-8BEN (for tax treaty eligibility)
Reporting Thresholds: Hatch or Stripe may issue a Form 1099-K or 1099-MISC to U.S. residents. Reporting thresholds are subject to IRS guidance and may change year to year. As of 2025, the standard threshold is $5,000 in gross payments (transitional IRS guidance); the IRS has indicated a future threshold of $600 may apply. We recommend consulting a tax advisor regardless of threshold — all Hatch income is taxable. Failure to provide tax documentation may delay or suspend payouts.
Section 05
Withholding Taxes (International Users)
Hatch complies with applicable withholding tax treaties. If you reside outside the U.S., you may be subject to tax withholding unless a treaty applies.
| Country | Default U.S. Withholding | Treaty Rate (with W-8BEN) |
|---|---|---|
| Canada | 30% | 0–15% |
| UK | 30% | 0% |
| India | 30% | 15% |
| Australia | 30% | 5–15% |
| Singapore | 30% | 15% |
| No Treaty | 30% | 30% |
Your rate is determined by Stripe based on your submitted documentation.
Section 06
Creator Responsibilities
As a monetizing user, you are responsible for:
- Reporting your Hatch income to your local tax authority
- Charging VAT/GST to your subscribers if legally required in your jurisdiction
- Keeping copies of earnings statements for tax filing
- Consulting a tax advisor if you operate as a business or sole proprietor
Hatch provides monthly earnings reports and maintains transaction-level records visible in your dashboard.
Section 07
Platform Responsibilities
Hatch is responsible for:
- Charging and remitting VAT/GST on platform service fees
- Providing transparency on earnings and deductions
- Collecting tax forms and verifying identity for payouts
- Complying with digital marketplace tax laws globally
- Cooperating with local tax authorities if audited or requested
Section 08
Invoices and Receipts
Hatch issues receipts for membership and subscription payments (with tax lines where required), earnings statements for creators, and tax forms via Stripe (e.g., 1099s, VAT invoices). All documents are accessible through your dashboard or by request to [email protected].
Section 09
Changes and Updates
We may update this policy to reflect changes in tax law, country-specific VAT/GST thresholds, or platform structure. You will be notified of material changes, and the latest version will be posted at hatch.social/legal/tax.