Banish online-business tax compliance turbulence, and put your calculations on autopilot with the Stripe Tax and MemberPress.
For most businesspeople, international tax compliance is downright triggering.
Every country, every state, and even sometimes local jurisdictions within those states can have their own sets of tax laws, regulations, and procedures.
And it gets worse. Each tax code is extremely complex, written in confusing legal lingo, and subject to change at the drop of a hat.
*Cue fits of frenzied laughter*
If you’re one of the many online business owners hit with instant nausea at the mention of international tax compliance it’s time you met Stripe Tax.
Stripe gives you the smoothest solution for handling tax obligations for your membership site.
Let’s get into the reasons why Stripe Tax for MemberPress will save you a lot of time and tax-induced headaches.
Stripe Tax… a 1-click kind of quick
Stripe Tax majorly simplifies the complexities of international and domestic taxation for businesses.
It automatically calculates taxes on each sale, or recurring payment, whips up receipts, and busts out tax reports, ensuring compliance with tax laws in different regions.
Stripe Tax is also fluent in a whole range of tax regulations and supports multiple currencies.
Rules and rates are subject to change, but Stripe Tax stays on top of it, protecting you against the risk of penalties and interest on top of uncollected taxes.
Thanks to its automated system, you can let Stripe Tax crunch the numbers in the wings while you take center stage in growing your business.
All this means that Stripe Tax saves you valuable time and reduces the risk of costly mistakes.
MemberPress… ultimate profit optimization
MemberPress is the world’s #1 monetization and membership plugin for WordPress.
This sizzling plugin juggles all the to-dos of memberships, subscriptions, and recurring revenue, while you focus on creating irresistible content.
MemberPress puts you in the control seat for content access. Restrict access to pages, posts, courses, custom post types, or any existing files from non-members, and run the show like a subscription site pro.
And when it comes to hobnobbing with popular payment gateways and email marketers, MemberPress has you covered.
But the real kicker? It’s a breeze to set up and so user-friendly, even a newbie can walk away feeling like a tech genius.
That’s why MemberPress is the preferred choice for businesses looking to build online courses, communities, and any kind of membership site.
Together, Stripe Tax and MemberPress lower the barriers to running a pro online membership site across practically all tax jurisdictions.
They clear the way for you to take on the world and rake in the cash with confidence.
How Does Stripe Tax Help My Membership Site?
The online membership business model is incredible for two major reasons:
1. Membership sites are globally accessible
2. Membership businesses are incredibly scalable
In a flash, you can find yourself making a 6-figure salary from your online content.
It’s the dream! But it comes with a cold-sweat-inducing nightmare: international tax compliance.
See, membership sites are liable for tax. Once you reach an earnings threshold in any tax jurisdiction, you’ve got to pay taxes. That’s where things can get tricky.
If you’re not careful, you’ll find yourself tangled in the web of tax compliance instead of focusing on growing your membership business.
Stripe Tax takes that burden off your shoulders in multiple ways.
Let’s break down exactly how Stripe Tax can benefit your membership site…
1. Peace of Mind With Automated Tax Compliance 🧘
No need to get knotted up over tax rates and laws in each country.
Stripe Tax calculates the correct amount of tax on every transaction on your membership site. That way you can feel confident you’re charging the right amount.
It considers the customer’s location and applies the correct tax rate based on local laws.
2. Avoid Penalties for Not Registering Where You’re Liable 🛑
Each jurisdiction defines a maximum amount of sales revenue you can generate before you’re legally required to register for and collect sales tax.
Did you know there are thousands of tax jurisdictions in the United States alone? That’s a heck of a lot of information to A) know about and B) process.
But you are legally obliged to monitor your sales in each jurisdiction where you do business. And when you cross one of these registration thresholds you’re required to register for sales tax.
If you don’t, you’ll be looking at paying penalties and interest.
Stripe Tax monitors all payments made through Stripe and lets you know when you’re approaching your threshold so you can register in time and celebrate your awesome revenue growth.
3. Never Worry About Ever-Changing Tax Laws 😌
Even if you achieve the amazing feat of being familiar with tax laws across all the jurisdictions where you operate, guess what? They’re subject to change.
It’s like painting the Golden Gate Bridge – you’ll never see the end of it.
This is especially true in a rapidly evolving digital economy.
Tax laws for digital goods and services (known as economic nexus in the US) are constantly changing. It can be challenging to keep up with these changes and make sure your business is compliant.
Thankfully, Stripe Tax keeps updated on changing tax rates and does those calculations for you.
4. Be Fully Prepared With Instant Tax Reporting 🗂️
Stripe Tax lets you instantly generate detailed tax reports showing how much sales tax, VAT, or GST you’ve collected in each jurisdiction.
As a result, you’re fully prepared to hand over everything to the appropriate tax authorities come tax season. No sweat!
5. Spot Growth Opportunities 📈
Strip Tax’s monitoring also show you your highest-performing regions. This helps you identify potential areas for growth where you can focus your marketing efforts and keep getting bigger and better!
6. Avoid Common International Tax Compliance Errors
Navigating the murky waters of international taxation is not for the faint of heart.
For starters, regulations are tough to understand. Not only that, they’re constantly changing. Put those two things together, and you’re bound to make costly mistakes.
Mistakes such as…
Inadequate Record Keeping
Accurate bookkeeping is crucial for tax compliance. A lack of detailed, accurate records can lead to issues when it’s time to file taxes or if (forbid it!) you happen to get audited.
Stripe Tax automatically generates comprehensive reports, helping to ensure your records are always up-to-date and accurate.
Filing Taxes to the Wrong Authorities
Tax laws vary from region to region, and knowing exactly where to send your taxes can be a puzzle.
With Stripe’s itemized reporting and tax summaries for each filing location, you’ll know where you’re supposed to send your taxes, preventing you from mistakenly filing with the wrong authorities.
Each country’s tax language and terms can be a jargon-filled minefield.
Stripe Tax has a deep understanding of tax laws worldwide. This understanding demystifies the lingo, making international tax compliance perfectly clear.
By leveraging Stripe’s smart systems, you can avoid these common pitfalls, and navigate international tax compliance with ease and accuracy.
Your membership will be globally accessible – and globally compliant – saving you from potential fines, penalties, and a lot of stress.
7. Save Time and Money ⏰ 💰
All the above benefits enable you to take the time, money, and mental energy ordinarily reserved for managing tax issues and spend it on building your business.
Stripe Tax significantly reduces your dependence on costly international tax experts in order to sell abroad. And you save yourself the mental taxation of getting your head around tax thresholds and changing policies.
Meanwhile, you can focus on what you do best: growing your business and delivering outstanding content.
With Stripe Tax, you’re not just surviving the world of taxes – you’re thriving in it!
How To Get Started With Stripe Tax for MemberPress
Ready to get going? The first thing you’ll need to do is ensure you’re using Stripe on MemberPress to manage your payments.
1. Install MemberPress on WordPress
Whether you’re collecting recurring or one-time payments for your online content, MemberPress has got you covered with a robust, feature-rich solution.
MemberPress is renowned for its seamless integrations and Stripe is no exception! Available on all MemberPress plans, you can enjoy seamless international transactions and all the benefits of Stripe Tax in a matter of clicks.
If you’re not already part of the MemberPress squad, this video tutorial will set you sailing to success:
2. Connect MemberPress to Stripe
Stripe is our recommended payment gateway, so chances are you’ve already done this step during set up.
But if you need to connect to Stripe, here is a handy video tutorial that’ll hook you up.
What if I’m using PayPal?
If you want to switch to Stripe from another payment gateway to make the most of this tax functionality, we got you!
First, take care of your automatically recurring subscribers. They’ll need to sign up again to change their payment method. Make the most of MemberPress coupons to ensure they aren’t paying twice.
3. Enable Stripe Tax in Stripe
Your next step is to configure Stripe Tax in your Stripe settings.
- Log in to your Stripe account from the Stripe website.
- From your Stripe dashboard, click the settings icon at the top right of the header.
- Locate the Tax section and click Settings.
- From there, add your business address into the field named Origin address.
- Select your Preset product tax code from the dropdown menu, aka the tax category that best describes your business.
- Under Options to integrate tax make sure that the Use automatic tax calculation slider is enabled.
4. Rinse and Repeat in MemberPress
You’re almost there! Now all that’s left to do is enable Stripe Tax in MemberPress!
- From your WordPress dashboard, head to MemberPress > Settings > Taxes.
- Check the Enable tax calculations box.
- Scroll to the Tax Rates section and check the Enable Stripe Tax box.
- Then select the Stripe payment method from the Stripe Tax Payment Method dropdown menu.
- Scroll up to Tax Options and select whether or not you want the prices on your site to be inclusive of tax.
- Hit Update Options.
And you’re all set up with Stripe Tax on MemberPress!
For more information, watch the video at the top of this blog or pay our knowledge base doc a visit.
Voila! International Tax Compliance Is a Cinch
Tax compliance doesn’t have to be the boogeyman lurking in the shadows of your online business dreams.
Stripe Tax takes on the monumental task of managing your taxes while MemberPress provides an excellent platform to grow your membership site or online business.
Together, they offer an elegant solution to rocket your membership site forward, leaving you free to focus on growth, creativity, and serving your subscribers.
It’s about turning the taxing part of your business into time off!
So, shake off those tax worries, get started with Stripe Tax for MemberPress, and power your online business into a brighter, tax-compliant future.
Got any international tax compliance tips? Share them with the MemberPress community in the comments section below!