How to Sell Ebooks on Payhip: Fees, VAT, Setup and What You Keep

VAT and sales tax on Payhip: what it handles for you

Tax is the part of selling direct that catches authors out, and it is where Payhip does the most work for you. Since 2015, an ebook sold to a consumer in the EU is taxed at the VAT rate of the buyer's country, not yours, and the UK has a similar rule. Collecting the right rate for 27 EU countries and the UK and filing the returns is a real job. Payhip does it by default.

Its help article on digital EU and UK VAT (last updated 9 July 2026) says Payhip will "take care of all EU VAT issues for your customers based in the European Union" and handles UK VAT by default. Payhip's pricing page goes further: it "automatically collects, reports and remits digital EU/UK VAT as well as US/Canadian sales tax on your behalf". The US and Canadian part is new: both help articles say Payhip has handled those sales taxes since 1 July 2026, at no charge. In the US, Payhip describes itself as a marketplace facilitator, which is what makes it responsible for collecting and paying the tax rather than you. In Canada it covers GST, HST and PST, but not Quebec's QST, which a seller who has to collect it still handles.

You make one choice in the Taxes tab of your settings: is tax added on top of your price, or included in it? Payhip's own example shows why it matters. A $10 ebook is sold to a buyer in France, where VAT is 20%:

• VAT added on top: the buyer pays $12. After the VAT and Payhip's 5% fee, you receive $9.50 (before the PayPal or Stripe fee).
• VAT included: the buyer pays $10. After the VAT portion and the 5% fee, you receive $7.91 (before the processing fee).

Adding VAT on top gives you the same share from every buyer and is how US buyers expect to see tax. Including it gives a European buyer a round price but earns you less on each European sale, so authors who sell mostly in Europe often include VAT and set the price a little higher.

Business buyers are different. A Payhip representative explains on the sell ebooks page that when an EU business enters a valid VAT number, the reverse charge applies and Payhip does not charge VAT; there is a "Redeem EU VAT company numbers" setting for this. If you would rather handle VAT yourself (some VAT-registered sellers do), you can switch Payhip's handling off in the Taxes tab.

Payhip handling sales tax does not replace your own income tax: what you earn is still income where you live. Payhip's customer export lists the gross, the Payhip fee, the processing fee and the VAT on every order, which is what an accountant will ask for. Our guide to passive income from ebooks sets realistic expectations for the numbers.

How to sell an ebook on Payhip, step by step

Ten steps from a manuscript to a live product. The first three happen before you open Payhip, and they decide whether the product sells. The rest take about half an hour the first time.

1. 1Write and edit the ebook
2. 2Export the files buyers will download
3. 3Make the cover and listing images
4. 4Open a Payhip account and connect PayPal or Stripe
5. 5Add the ebook as a digital product
6. 6Set the price
7. 7Turn on PDF stamping and a download limit
8. 8Choose how tax shows at checkout
9. 9Test the checkout
10. 10Share the link and launch

1. Write and edit the ebook

Direct buyers pay for an outcome: a plan they can follow, a problem solved, a story they want. Write the book around one reader and one result. If you are starting from an idea, Inkfluence AI drafts an outline you can change before any chapter is written, then writes the chapters for you to edit. Length comes from the number of chapters you choose; there is no page target. If you have a manuscript already, import it from Word, PDF or EPUB and use the editor and the AI review to tidy it.

Do the editing before you list. A direct buyer who feels short-changed asks for a refund and does not buy again, and on Payhip you are the brand. Read every chapter aloud once, check every fact, number and claim, and add the material that makes a direct ebook worth its price: worksheets, checklists, templates or examples. The workbook generator builds fill-in pages from a topic if your book needs them, and our ebook ideas list helps if you are still choosing a topic.

2. Export the files buyers will download

Payhip accepts almost any file type, up to 5GB a file, and a product can hold several files. For an ebook that means a choice between PDF, EPUB or both:

• PDF keeps your layout exactly, prints well and opens on any laptop or phone. It is the format for workbooks, planners, recipe books and anything with fill-in pages. It is also the format Payhip can stamp with the buyer's email.
• EPUB reflows to fit any screen and opens in Apple Books, Google Play Books, Kobo and most reading apps, and it can be sent to a Kindle. It is the better reading experience for a novel or a long how-to.
• Both costs you nothing extra on Payhip and answers the "which format do I get?" question before a buyer asks it.

In Inkfluence AI, PDF export is free, including on the free plan, with a small Inkfluence footer and a closing page; any paid plan or a one-time credit pack removes the branding. EPUB, Word (DOCX) and the KDP print package need any plan or a credit pack (credit packs start at 15 credits for $9.99). For a paid product, export without the branding so the file looks like yours. Our page on ebook formats explains the PDF and EPUB trade in more detail, and why most AI books are exported as PDF shows what authors actually choose.

Two details save support emails later. Name the files plainly, for example "Weeknight-Sourdough-Planner.pdf", because that is what the buyer sees in their downloads folder. And if you plan to use PDF stamping, keep the PDF in portrait orientation and under 250MB, the two limits Payhip gives for stamping.

3. Make the cover and listing images

On Payhip the cover is your shop window: it appears on the product page, in your store grid and in any link preview when you share the product. It needs to read at thumbnail size, so keep the title large and the image simple. Inkfluence AI's cover designer can generate the artwork and set the title, and with any plan or a credit pack you can download the finished cover as a 2000 by 3200 pixel JPEG to upload to Payhip. If you want ideas first, the AI book cover generator and our guide to designing a book cover with AI cover the principles.

Payhip gives no fixed image size. Its help centre says the ratio is what matters, set in your collection settings, and that mixing image shapes looks messy. Pick one ratio for every product and stick to it. A flat cover works; a photo of the PDF open on a tablet, or a spread of two sample pages, often sells a workbook better, because it shows what the buyer gets. Payhip also lets you add a free preview file (a sample chapter or a sample worksheet) that visitors can download before buying, and a video or audio clip in the description.

4. Open a Payhip account and connect PayPal or Stripe

Sign up on payhip.com; the Free Forever plan needs no card. Choose your username, which forms your store's address, then go to Account, Settings, Payment Details and connect PayPal, Stripe or both. Stripe connects through a redirect to Stripe; PayPal asks for your PayPal email and an approval on PayPal's side. You cannot sell until at least one processor is connected. If you will ever sell memberships or courses on instalments, connect Stripe now, since recurring payments only run through Stripe.

5. Add the ebook as a digital product

Go to Products, click Add new product and pick Digital Product. Payhip asks for the file first: click Upload product file and add your PDF, EPUB or both. Then fill in the title, the price, the cover image and the description.

The description does the selling, so write it for the reader rather than about yourself. Open with who the book is for and what they will be able to do after reading it. List what is inside (chapters, worksheets, templates, page count if it is fixed). Say which formats they get and how they open them. End with a short line about you and why you wrote it. The book description generator gives you five versions to start from, and the book title generator helps if your title is still a working one.

Under the product's Category & Tags tab you can pick a category, which is how a product is put forward for Payhip's marketplace once your store has made $10 in sales and been reviewed. Fill it in now even if you are not eligible yet.

6. Set the price

Direct ebooks are priced on value to the reader, not on the $2.99 to $9.99 band that ebook stores have trained readers to expect. A practical workbook or a niche guide for an audience that trusts you can sell at $12 to $29; a short novel sold to your newsletter readers usually sits closer to bookstore prices. Our guide to pricing an ebook sets out the price bands by type, and the calculator above shows what each price leaves you.

Payhip has two pricing tricks built in. Type a plus sign after the price and it becomes pay what you want: "5+" means a $5 minimum with the option to pay more, and "0+" makes it free with an optional payment. And a price of $0 makes a free product, which is how you use Payhip for a lead magnet: connect your email service, attach a list to the free product, and every download joins your list. The lead magnet generator builds that kind of short free guide.

7. Turn on PDF stamping and a download limit

In the product's Advanced Settings, tick "Protect your PDF files". Payhip then stamps the buyer's email address and date of purchase on the top left of every page of every PDF they download. It does not stop sharing, but a buyer is far less likely to post a file with their own email printed on each page, and if a copy turns up somewhere you can see who bought it.

The download limit is the second guard. Payhip sets it to 5 downloads per buyer by default; you can change it, and reset it for a buyer who runs out after changing phones. Five is generous for an ebook. EPUB files are not stamped, so if piracy worries you, sell the PDF as the main file. And if you update the book later, replace the file on the product: past buyers get the new version through their original download link without paying again. Payhip does not tell them automatically, so send an email update (more on that below).

8. Choose how tax shows at checkout

Open Settings, then Taxes. EU and UK VAT handling is on by default; choose whether VAT is added on top of your price or included in it. Do the same for US and Canadian sales tax at the bottom of the page. For US sales tax, Payhip also asks you to set a tax category on each product under Advanced options, because states tax digital goods differently; for a large catalogue the bulk editor does this in one go.

If you are already registered for GST in Canada, Payhip's help article explains a joint GST506 form you fill in with Payhip. If you have a physical presence in a US state, Payhip notes you may still need to file a zero-dollar return there. Both are edge cases for most authors, but read the article for your country before your first sale.

9. Test the checkout

Payhip suggests three ways to test: create a 100% off coupon and buy the product with it; make a free copy of the product; or set a small price and buy it yourself from a private browser window, with a different email and a payment method that is not linked to your own account. Go all the way through. Check the receipt email, the download page, that the PDF opens and is stamped, and that the EPUB opens on your phone. Then delete the test coupon.

10. Share the link and launch

Copy the product link from Share / Embed on the Products page and put it where your readers are: an email to your list, a pinned post, your bio, the end of related blog posts and videos. Payhip also gives you a direct checkout link (payhip.com/buy?link= followed by the product key) that skips the product page, which suits an email to people who already know what they are buying.

A short launch offer helps the first week: a coupon for the first few days, sent to your list first. After the first handful of sales, ask buyers for a review; Payhip shows customer reviews on the product page. If you are planning the whole release, our ebook marketing strategy guide covers the launch and the months after it.

Can you sell AI-written ebooks on Payhip?

Payhip has published no rule about AI-generated content. We read its help article on products that are not allowed (last updated 26 July 2026) and its terms of service on 28 October 2026, and neither mentions AI, artificial intelligence or generated content. Payhip asks for no AI disclosure, unlike Amazon KDP, which asks at upload, and Etsy, which asks you to label AI-made listings.

The content rules still apply to what the book says. The restricted list has 13 categories, and three of them matter for ebooks written quickly with AI help: get-rich-quick schemes, copyright infringement, and unlicensed medical services or advice. A "make $10,000 a month" ebook, a book built on someone else's text, or a health guide that tells readers to replace treatment could all fall foul of those, whoever wrote them. The others are pornography, hateful content, file sharing, gambling, debt and loan content, virtual credit cards, card sharing, cannabis products, vendor lists and anything illegal where you live. Payhip says sellers who break its terms can lose their account.

Two cautions. Search results still quote an older version of that page that also banned private label rights (PLR) and master resell rights (MRR) content; the version we read does not list them, so check the live page before selling anything with resell rights. And Payhip's terms were last updated on 19 February 2018, so they predate the question. If Payhip adds an AI rule, it will most likely appear on the restricted products page.

For every platform's rule side by side, see which stores allow AI-written books in 2026 and can you sell AI-generated books. The practical bar does not change: buyers who feel a book is thin ask for refunds and do not come back, so edit it into something you would put your name to.

Payhip FAQ for ebook sellers