This notice explains, in plain terms, how tax reporting is expected to work for sellers on the Cratemint marketplace, and what information Cratemint may be required to collect. It does not replace advice from your own accountant or tax adviser.
1. You are responsible for your own taxes
- You are responsible for your own tax obligations. Income you earn from selling records on the marketplace may be taxable. Whether it is taxable, and how much you owe, depends on your own circumstances.
- Cratemint does not calculate, withhold, or pay your income tax for you. Cratemint may be required to report certain seller information to a tax authority (see below), which is not the same as paying tax on your behalf.
- If you are unsure whether your selling is taxable, speak to a qualified tax adviser.
2. UK sellers: platform reporting to HMRC (DAC7 / UK digital platform rules)
As a UK digital platform, Cratemint may be required to collect information about sellers and report seller income to HMRC under the UK rules for digital platforms (the UK implementation of the OECD model rules, commonly referred to in Europe as DAC7). [VERIFY WITH A TAX ADVISER] whether and exactly how these rules apply to Cratemint and from which reporting period.
What may be collected. For a reportable seller, the information a platform is typically required to collect includes:
- legal name,
- primary address,
- a tax identification number (for a UK individual this is generally the National Insurance number (NINO) or, where relevant, the Unique Taxpayer Reference (UTR)),
- and the total consideration paid to the seller over the reporting period, together with any fees withheld.
The precise list of required data points is set by the rules and must be confirmed [VERIFY WITH A TAX ADVISER].
When it is collected and reported. Reporting obligations generally apply once a seller crosses a reporting threshold (a number of sales and/or an amount of income) in a reporting period. The current threshold values are as set by HMRC; confirm current values [VERIFY WITH A TAX ADVISER] and are not stated here as fixed numbers. Where a seller is reportable, the platform reports to HMRC and provides the seller with a copy of the reported information.
Being reported to HMRC does not by itself mean you owe tax. It means the information has been shared. What you owe depends on your circumstances.
3. US sellers: 1099-K posture (Stripe)
- The marketplace is UK-to-UK only at launch, so US sellers are not expected at launch. This section states the intended posture for if and when US selling is enabled.
- Where a seller has a US Stripe connected account, Stripe (not Cratemint) issues the IRS Form 1099-K to that seller when the applicable federal reporting threshold is met. The threshold is as set by the IRS; confirm current values [VERIFY WITH A TAX ADVISER] and is not stated here as a fixed number.
- Cratemint's role in that case is to operate the Stripe Connect platform through which payments flow. The 1099-K reporting is performed by Stripe as the payment processor for the connected account. State tax reporting, if any, is also [VERIFY WITH A TAX ADVISER].
4. Keep your own records
- Keep your own record of what you sold, for how much, and any costs. If you are ever asked about your selling by a tax authority, your own records are what you will rely on.