Course Platform Taxes: What You Need to Know About Fees and Compliance

When you sell an online course, you’re not just teaching—you’re running a business. And like any business, course platform taxes, tax obligations that apply to digital course sales across states and countries. Also known as digital course taxes, these aren’t optional. If you’re using platforms like Teachable, Thinkific, or Kajabi, they might collect sales tax for you—but that doesn’t mean you’re off the hook. You still need to understand where you have tax liability, what triggers it, and how to report it correctly. Many creators assume that because their course is digital, it’s tax-free. That’s a myth. In the U.S., over 45 states now require sales tax on digital products, including online courses. Even if your students are in another country, you might still owe VAT, GST, or similar taxes depending on where you’re based and where your buyers live.

EdTech tax compliance, the legal framework that governs how online education providers handle taxes, reporting, and registration isn’t just about filling out forms. It’s about knowing your nexus—where your business has enough presence to trigger tax obligations. That could be your home state, a state where you have students, or even a country where you’re actively marketing. Platforms like Gumroad or Podia handle some of the heavy lifting, but they don’t cover everything. If you’re selling to EU customers, you need to register for VAT MOSS. If you’re in California and have over $500,000 in sales, you’re required to collect and remit sales tax statewide. Ignoring this isn’t risky—it’s expensive. Fines can hit thousands, and audits don’t care if you "didn’t know."

And it’s not just taxes. There’s also digital course fees, the percentage charges platforms take from your sales, which can affect your net income and tax calculations. These aren’t taxes, but they directly impact your taxable income. If you make $10,000 on Teachable and they take 10%, your gross revenue is $10,000—but your net is $9,000. You still pay income tax on the full $10,000. That’s a common mistake. You can’t deduct platform fees from your gross revenue for tax purposes—you deduct them as business expenses on Schedule C. Keep detailed records. Use accounting tools like QuickBooks or Wave. Track every sale, every refund, every tax collected. You’ll thank yourself when tax season rolls around.

What you’ll find in these articles isn’t theory. It’s real advice from creators who’ve been through audits, filed international tax forms, and learned the hard way. You’ll see how to set up automatic tax collection, how to handle refunds without breaking compliance, and how to avoid overpaying because you didn’t know about exemptions. Whether you’re selling a $20 course or a $2,000 certification program, these rules apply. No one’s coming to explain it to you. You have to learn it yourself. Let’s get you covered—so you can focus on teaching, not taxes.