- 1 Install the Tax & EU VAT add-on
- 2 Enabling the functionality
- 3 Defining tax rates
- 4 Settings
- 5 EU VAT calculation and validation
- 6 Front-end display
- 7 Back-end display
The Tax & EU VAT add-on for Paid Member Subscriptions lets you charge your users tax or vat depending on their location.
Install the Tax & EU VAT add-on
The Tax & EU VAT add-on is available only with a Paid Member Subscriptions Pro license
After purchasing a premium version of Paid Member Subscriptions, you can check the following guide on how to install Paid Member Subscriptions.
After the installation of the Pro version, in order to activate The Tax & EU VAT Add-on, go to Dashboard → Paid Member Subscriptions → Add-ons → Tax & EU VAT and click Activate.
Enabling the functionality
After the add-on is installed and activated, in order to enable the tax functionality you will need to go the PMS -> Settings -> Tax page, check the Enable taxes and tax calculations on all subscription plan purchases box and save the settings.
Defining tax rates
In order to add Tax calculations for non-EU countries you will need to enter the custom rates you wish to apply into the plugin. This process is done by uploading a .csv file.
Inside the plugin, we provide a sample file that you can edit and add the tax rates that you require.
Each custom tax rate has the following characteristics:
- Country Code – 2 digit country code
- State Code – 2 digit state code. You can check a list of states from the plugin by looking at the files located in `/wp-content/plugins/paid-member-subscriptions/i18n/states/*`. Use * to apply to all states
- City – city name for which the tax applies. User * to apply to all cities
- Rate % – tax rate that should be applied. Ex. 7.5 for 7.5%
- Tax Name – name of your tax
Upload Tax Rates
Uploading new tax rates is done through a .csv file. The CSV file is required to have 4 columns:
country code, state code, city, rate, tax name
A sample file with this structure can be downloaded from here. You can modify this file, adding your desired custom tax rates, and then import the custom tax rates on your website.
Export Tax Rates
Plugin tax rates can be exported by using the Export Tax Rates button.
The main use case for this would be to add new rates or update existing ones.
Clear Tax Rates
Using the Clear Tax Rates button you can remove from your database all the custom tax rates that you defined.
The main use case for this is when your looking to update your current rates or add new ones. You can first Export the tax rates, make the necessary modifications/additions, then clear your current tax rates and reupload them.
Prices entered with tax
This option lets you select how you calculated the prices of your subscription plans. The subscription price can either be inclusive or exclusive of the tax.
If the subscription price is inclusive of the tax, at checkout the subscription plan price will be used and the tax will be calculated based off that. If you use the exclusive option, at checkout the tax will be added on top of your defined subscription plan price.
Default Billing Country
Choose which country should be selected by the default in the form.
Default Tax Rate
Enter the default tax rate that will be used when there is no custom tax rate found.
By leaving this option set to 0, users for which you didn’t define a custom tax rate will not be charged any tax.
Make a particular subscription tax exempt
When editing a Subscription Plan, you can also choose to make it tax exempt. When a Tax Exempt plan is selected in the front-end, tax will not be calculated for it.
EU VAT calculation and validation
Enabling EU VAT
In order to enable this functionality, check the Enable EU VAT on subscription purchases box, then select your Merchant VAT Country and save the settings.
This option lets you tax your users VAT and validate supplied VAT Numbers for tax exemptions.
EU VAT tax rates
For EU VAT, you are not required to define custom tax rates.
The plugin already has the latest VAT rates for EU countries so you don’t have to enter them, but you can still overwrite the rates from the plugin by supplying your own rates and labels using the Upload Tax Rates feature.
EU VAT Validation
When EU VAT is enabled and a country from within the EU selected, a new field will appear `EU VAT Number`. This field can be completed by your customers in order to be exempt of paying VAT for the transaction.
The field is validated on the fly against the VIES database and the information is displayed to the user.
A successful VAT Number validation offers the user exemption from the tax, but keep in mind that VAT will still be charged if the user is from the same country as you (based on the Merchant VAT Country that you selected).
When purchasing a plan, users will be able to see a breakdown of the price they are paying just before the register button. The tax rate is determined based on the Subscription Plan and Billing Details that the customer selects.
After registration, the user can find this information on the Payments tab of the [pms-account] shortcode, if he hovers over the amount of a payment.
If you use the Invoices add-on, the same information about the tax is displayed on it. If EU VAT is enabled and a valid VAT Number was used for the purchase, it will also be added to the Invoice.
As an admin you can view information about the taxes applied to a particular payment by going to the PMS -> Payments list and hovering over the Amount column.
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