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Tax handling on the web rail is materially different from app-store billing. App stores collect and remit on the developer’s behalf in many jurisdictions; web billing puts that obligation back on the seller. This page covers how Recurr’s setup handles it. The short version: you are the tax filer of record. Tax calculation and collection is included in your Recurr platform fee — no separate charge — covering calculation and reporting; bring your own provider (Avalara, Anrok) if you prefer. Recurr never sits in the tax chain.

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The tax filer of record posture

Subscription charges run through Stripe Connect Standard. You are Merchant of Record on every subscription — the legal counterparty, the entity Stripe pays out, and the tax filer of record. What this means in practice:
  • Your business handles tax registration and filing in the jurisdictions where you have nexus. Tax is collected on your behalf; you remit through your existing accounting flow.
  • Recurr doesn’t appear in the tax chain. No Recurr tax ID on subscriber invoices, no Recurr-side reporting obligation in your jurisdictions.
  • The migration doesn’t create new nexus on its own. Moving the billing rail from app-store to web doesn’t change where your subscribers are; it changes who is collecting from them. The nexus picture you had on web acquisition (if any) extends to migrated subscribers.
For most apps in the wedge ICP, web nexus is already familiar — paid acquisition campaigns, gift-card or one-off purchases, or any direct-billing channel that exists alongside app-store billing has already surfaced the tax question.

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Tax handling — included by default

Tax calculation and collection is included in your Recurr platform fee. No separate charge to you, no surcharge to subscribers. It’s enabled at onboarding unless you opt for an alternative provider. What’s handled:
  • Real-time tax calculation per transaction based on subscriber address + product type
  • Threshold monitoring for US state nexus, EU VAT registration thresholds, and equivalents in other jurisdictions
  • Filing-ready reports that plug into your accounting flow or your existing tax filing provider
  • Liability tracking across the jurisdictions you’re registered in
The platform doesn’t file on your behalf in most jurisdictions (the filing remains your accounting team’s or your tax provider’s), but it produces the data shape that makes filing mechanical rather than research-intensive. Coverage spans 50+ jurisdictions across US state sales tax, EU VAT, UK, AU GST, and more.

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US state nexus — the practical picture

For US-based apps, the most active tax question is state economic nexus. Each state sets its own threshold (typically $100K of in-state sales or 200 transactions per year) past which the seller is obliged to register and collect. What’s worth knowing on the migration:
  • Migrated subscribers stay in their original geography. Migration doesn’t shift their billing address. If you already had nexus in a state, you still do; if you didn’t, migration doesn’t create it.
  • The web-billed cohort accelerates threshold crossings. App-store billing didn’t surface state-level data to you; web billing does. Some states you may have already been over-threshold for without knowing — the platform surfaces this.
  • Past-period exposure is a real conversation. If migration analysis reveals you’ve been over-threshold in a state without registering, the past-period exposure is between you and your tax advisor. Recurr’s posture is operational, not advisory.
The Migration Review walks the per-state threshold picture using your real numbers, when state-level concentration justifies the conversation.

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EU VAT + UK + AU + other regional VAT

The shape is similar to US state nexus but with national-level thresholds:
  • EU: the one-stop-shop (OSS) scheme covers cross-border B2C VAT for most digital services; €10K threshold across the EU before registration kicks in
  • UK: separate post-Brexit registration; UK-specific threshold (£85K)
  • Australia: GST registration at AUD 75K of taxable supplies
  • Other regions: country-by-country thresholds; these are tracked automatically
For apps with material international subscriber bases, the migration doesn’t change the underlying tax obligation — it does change visibility into the obligation. Some apps discover they should have been registered in a market earlier; the migration data surfaces it.

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Alternative providers (Avalara, Anrok, etc.)

If you already use a third-party tax provider (Avalara, Anrok, TaxJar, etc.), the included tax handling is opt-out — your existing provider continues to handle calculation and reporting. Your Stripe account integrates with most major providers. Recurr’s platform fee is unchanged whether you use the included tax handling or an alternative. The Migration Review covers the integration shape if you’re bringing your own tax provider.

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What Recurr does on the tax side

Operationally, Recurr’s tax involvement is bounded:
  • Routes the subscription charge through your Stripe Connect account so tax is calculated and collected at the point of charge (via the included handling or your alternative provider)
  • Surfaces tax data in the dashboard alongside subscription state, so your accounting team’s tax close has the numbers it needs
  • Doesn’t issue invoices on Recurr’s letterhead — Stripe issues the subscriber-facing receipt; your tenant name appears as the seller
Tax advice, jurisdictional registration, past-period exposure remediation — these are out of scope for Recurr. They land with your tax advisor or in-house tax counsel.

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Two questions to bring to the Migration Review

If tax is a meaningful part of your decision:
  • What’s your current registration footprint? (Which US states, which EU countries, AU GST, etc.) The pilot wave plan can sequence to start in jurisdictions where you’re already registered.
  • Who handles tax operationally? Your in-house accounting team, an external tax provider, or both? The integration shape depends on the answer.
Billing + tax operations →