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Status on Sales Tax / VAT in MemberVault
Status on Sales Tax / VAT in MemberVault

Ongoing update on the status of charging sales tax and VAT

Mike Kelly avatar
Written by Mike Kelly
Updated over a week ago

We're happy to report that we're making steady progress towards the goal of giving you good and affordable solution for sales tax for your account! There has been a ton of work, lots of learning, and even more testing that has been happening over the last few months. We're first going to roll this out for us, so we can test it LIVE, then early access will get it, then shortly after, it will land for everyone. We're hoping this will all happen within a few months but doing this properly is more important than doing this quick, so it's just an estimate.

However, there are REAL actions you can take now to start getting prepared for this. And in fact, if you plan to just include sales tax in your price, you can probably start today.

* How this will work *

In short, we're going to be leveraging Stripe Tax for this. Since Stripe already knows the location of your buyers, it's ALREADY tracking this stuff. The part we're working on is allowing you to use the Stripe Checkout flow, which will allow you to locate the buyer at time of sale and optionally add the tax on top of the base price. (you can also opt to have your total price be the same and take the tax out of your revenue).

* What you can do now *

Even though our Stripe checkout integration is still being built, you can already get started on this and save yourself time later when this lands.

  1. Only use Stripe, and disconnect Paypal. We're still going to support both Stripe and PayPal moving forward, but since we're relying on Stripe Checkout and Stripe Tax, if you want to collect and remit sales tax, you will need to ONLY use Stripe.
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  2. Activate or confirm you can access Stripe Tax. Log into your stripe account, click on "More", then "Tax". (or just go here: https://dashboard.stripe.com/tax ). More information about Stripe Tax overall can be found here: https://stripe.com/tax
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  3. Check your thresholds. Once you're in the Tax section, click on "Monitoring" and it will show you a super simple report of all the countries and states where you've exceed or close to exceeding threshholds. If you've not exceeded any threshholds, congrats. You officially don't even need to worry about collecting and remitting tax at the moment!

If you have exceeded thresholds, you'll have to decide how/if you want to register in those locations. You should talk to your accountant or tax professional on this. I've learned there are many schools of thought here. Many US businesses seem to only worry about collecting and remitting in the states, where others choose to also register and remit to outside countries. It's still kinda the Wild West out there, so you have to decide how far you want to go.

Once you decide where you need to register for taxes, you can check out this helpful page that lists all the locations and where to register. ( https://stripe.com/docs/tax/registering ). Once registered, you can click on the "add" button next to that location in the monitoring page to officially tell stripe you want to start collecting tax here. (this won't work yet in MV, but will automatically start working when the update gets pushed)

Stripe will let you run tax reports and all that you can remit to the states or countries. It's all very well documented.


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* Can you pay someone to do this? *

Good question! If you're in the US and you only care about remitting taxes to US states, then you can sign up for Tax Jar ( https://www.taxjar.com/ ). They will hook up to your stripe and do all the tracking. For a fee, they'll also do the registering for you as well. This *seems* like the "set it and forget it" option, but we haven't personally used it yet, so just sharing what we've learned.

If you're in Europe / or want to track and remit to other countries, you'll likely want to sign up for Qualderno. They work the same way where they connect to your Stripe and do the tracking for you. However, it seems they don't have a way to register for you, so you'll still have to do that leg work, or hire it out.

We're still on the look out for good tax professionals we can recommend to hire for this. So if you're a tax professional or know someone, let us know!

We know this is a LOT to take in, and once we get closer to releasing this, will have more formal documentation and training. But we wanted to give you an update, and share what we've learned. We also know that the FEAR of not knowing is the worst part. So with the steps above, you can ALREADY start tracking and getting an idea of what your tax burden will be.

If you have any questions, let us know! We're happy to share what we know, and happy to learn what we don't.

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