Tax Settings

Steps to define Payment Module tax settings

1. In WordPress administrator main navigation click ActiveMember360, Payment Settings.

2. In ActiveMember360 Payment Settings tabs click Tax.

3. If your company is based in the USA where a sales tax is levied at the state level, enter the applicable State Tax percentage.

   State sales tax is currently only available for companies based in the USA.

4. Specify your country’s national Sales Tax percentage.

5. Click Save Settings.

Important

The sales tax defined as detailed above will be charged if the purchaser's location matches with your company location, in whole or in part.

Otherwise no sales tax will be charged.

This means that the ActiveMember360 Payment module is not appropriate for digital products or services sold to purchasers in Europe or the UK where the purchaser's location does not match with your company location.

Tax Examples

Example 1

If your company is based in Germany, you would define a state/province sales tax of 0% and a country sales tax of 19%. The total percentage of 19% will only be charged if your customer is also located in Germany, otherwise no sales tax will be charged.

Example 2

If your company is based in the USA where a national sales tax is charged in addition to a state sales tax, then if the national sales tax were set at 10% and the sales tax in your state were 5%, the following would apply:

• If the customer is outside the USA no sales tax will be charged (0%).
• If the customer is in the USA but located in a different state to your company, only the 10% national sales tax will be charged.
• If the customer is both in the USA and in your state, a combined sales tax of 15% will be charged: 10% national sales tax and 5% state sales tax.