Configuring MemberPress Taxes

« MemberPress Users Manual

If you need to collect taxes it can seem complex to figure out how to configure your membership site to do this. But good news, we've worked hard to ensure that getting setup to collect taxes is as easy and straightforward as possible in MemberPress. To collect taxes with your sales in MemberPress you’ll want to go to MemberPress > Options > Taxes to get started.

 

Tax Options

There are several options you can choose from to set up taxes on your website after you first enable tax calculations:

Tax Options

Prices Entered With Tax

This option will help MemberPress determine whether the prices you specify for your memberships are exclusive or inclusive of tax.

If exclusive is selected, the customer will pay the price of the membership plus the cost of any applicable tax but if inclusive is selected, the customer will pay just the price of the membership which includes any applicable tax.

Let's say you had a $10 Membership "exclusive" of tax, and the tax rate the customer should be charged is 5%. The customer would then pay $10.50 total for their Membership ($10 base membership + $0.50 tax).

Now let's say you had the same $10 Membership "inclusive" of tax with the same tax rate of 5% for the customer. The customer would then pay $10 total for their Membership ($9.52 base membership + $0.48 tax).

Calculate Tax Based On

This will determine whether tax should be calculated based on the address that the customer enters or on the merchant address you entered in MemberPress > Options > Info.

Default Address

This option will enable you to specify a default customer address that can be used as the taxable address.

If there is no address set for the customer then MemberPress can either use the merchant address to calculate the tax or use no address at all which would result in no tax being applied to the sale.

 

Tax Rates

MemberPress has some great options for determining the tax rate given your location or that of the customer. Currently, MemberPress supports two automatic solutions for determining tax rates and one for uploading your own custom rates.

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Alavara TaxRates

Alavara offers a free TaxRate API service that you can now use with MemberPress to automatically calculate accurate taxes on locations in the United States. All you need to do to get started setting this up is to visit Alavara's TaxRate API website and register for a free account. Once you complete this process you can just copy the API key they provide and paste it into MemberPress here. Once this is done, you'll be able to calculate and collect tax accurately across the US automatically.

VAT Tax

MemberPress offers full VAT tax support including the new rules that went into effect in January of 2015. All you need to do is enable it and select the country of the VAT MOSS that you report to. Once this is done MemberPress will calculate and collect VAT taxes on any of your sales coming in from all of the nations in the EU.

 

Custom Tax Rates

MemberPress also allows you to upload and fully manage your own custom tax rates. Please note that when VAT taxes are enabled, any custom tax rates you define in this table for EU countries will be ignored and the proper VAT rates will be used instead.

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Each custom tax rate has the following attributes:

  • Country Code – 2 digit country code for the rate. Use ISO 3166-1 alpha-2 codes. Leave blank (*) to apply to all countries.
  • State Code – 2 digit state code for the rate. See the state files located in i18n/states/ for supported states. For the US, use a 2 digit abbreviation e.g. AL. Leave blank (*) to apply to all states.
  • ZIP/Postcode – Enter postcodes for the rate – you may separate multiple values with a semi-colon (;), use wildcards to match several postcodes (e.g. PE* would match all postcodes starting with PE), and you may use numeric ranges (e.g. 2000-3000). Leave blank (*) to apply to all postcodes.
  • City – Semi-colon separated list of cities for the rate. Leave blank (*) to apply to all cities.
  • Rate % – Enter the tax rate, for example, 20.000 for a tax rate of 20%.
  • Tax Name – Name your tax, e.g. US State Tax
  • Priority – Choose a priority for this tax rate. Only 1 matching rate per priority will be used. To define multiple tax rates for a single area you need to specify a different priority per rate.

Once your tax rates are uploaded you can export your tax rates to a CSV, delete individual tax rates, clear all the tax rates and you can always upload additional tax rates from other, properly formatted CSV files.

 

Importing and Exporting Custom Rates

There is an export button within the table which you can use to export a CSV of your input rates.

There is also an import function which you can use to import a CSV. The CSV requires 6 columns:

country code, state code, postcodes, city, rate, tax name

And optionally an additional column:

priority

If omitted or blank, priority will default to 1.

Here's an example of a CSV file for California state taxes (Note: the rates in this file aren't guaranteed to be accurate):

CA_tax_rates.csv

If you're looking for accurate, up to date tax rate csv files you can find them at taxrates.com. You'll need to modify files downloaded from taxrates.com but they're easily modified to be imported into MemberPress.

 

Deleting Custom Tax Rates

It's easy to delete a single custom tax rate by clicking the 'x' next to each tax rate and to clear all tax rates by clicking the "Clear Tax Rates" button underneath the tax rates table.

 

Viewing Tax Reports

You can now access reports and CSV downloads in MemberPress > Reports that will clearly inform you of how much tax has been collected.

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You can view or download your tax collected per day, month and year overall or by product. In addition, you can download your VAT tax collected by transactions or separated by country.

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