Add Tax to Your Songwriter's Royalties ✪
When you are auto-paying your songwriters or creating self-bill invoices on your songwriter's behalf, it may be that your songwriter is tax registered and you are required to add a Sales Tax or VAT on top of their royalties total. In this article we will discuss how you can add such tax information on Curve on your songwriter's behalf.
Set Up the Tax Info in the Payee
You can add tax information for your artist on Payee level. To get started, please go to Contracts > Payees.
In the Tax Info area of your Payee, you will need to complete the following three fields.
VAT/GST/Sales Tax No. - This is your songwriter's tax number. This number will be displayed on the self-bill invoice.
Tax Wording - Here you specify how Curve will phrase the Tax. This usually differs from country to country and will be dependent on where your artist is based (eg VAT in the UK, Sales Tax in the US, GST in India, …).
Self Billing Tax Rate – This is the tax rate that will be applied to the Balance and Self Invoice for this Payee.
Enable Self-Billing in the Contract
Tax will only be added to the Contract when also the Generate Self-Billing Invoice option is enabled on the Contract. When generating Self-Billing Invoices, we also recommend the Auto-Payment option being enabled, so that any payable balances are automatically cleared, and you are notified of a Payment Due via the Statement Export in your Period.
Review the Output
Once the balance of your Contract reaches its Minimum Payout and a payment is due, Curve will add the Tax % to the Royalty amount. You can view this Tax Transaction on the Transactions tab of your Contract. Additionally, this Tax will also display on the Statement Of Account and Self-Billing Invoice.