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What Is Tax Support for Communities?

Tax Support for Communities allows you to collect applicable taxes on paid purchases made within your community. This feature uses the tax settings you have already configured in your CRM's Payments system, so you do not need to create a separate tax setup just for community sales. When enabled, the checkout process for eligible community purchases will automatically apply the correct taxes based on your Payments configuration.

Benefits of Using Tax Support

Enabling tax support for your community offers several advantages for both your business and your members.

Transparent Pricing: Members can see any applicable taxes before they complete their purchase.
Accurate Billing: Helps ensure you collect the correct total amount by including taxes upfront.
Centralized Management: Manage all your tax settings from a single location in the CRM Payments area.
Broad Coverage: Supports taxes on various community monetization methods, including memberships, courses, and events.
Flexibility: You can use automatic tax calculations, manual tax rates, or a combination of both.
Regional Compliance: Automatic settings can calculate tax based on customer location and your business's nexus addresses.

Supported Payment Types

Tax support applies to the following types of paid offerings within your community:

Paid Memberships or Groups: Charging users for access to public or private community groups.
Courses Sold in Communities: Paid courses that are offered directly within the community.
Paid Community Events: Events such as workshops or meetups that require a payment to register.
Event Subscriptions: Recurring payments for event access, where tax behavior follows your Payments setup.

Automatic Tax Calculation

Automatic taxes calculate the applicable tax rate based on the customer's billing address and your business's tax configuration. This is ideal for businesses that sell to customers in multiple regions. The system uses the tax settings you have enabled in your CRM Payments.

Automatic tax calculations may consider factors such as:

The customer's billing address.
Your business's nexus addresses.
The tax category or code assigned to a product.
Whether pricing is set to be tax-inclusive or tax-exclusive.
Any relevant tax IDs you have registered.

Manual Tax Rates

Manual tax rates are fixed percentages that you can create and assign to specific products. They are useful for situations where automatic tax calculation does not apply or when you need a specific, predefined rate.

You can create manual tax rates in the Payments settings. For each rate, you can specify a name, percentage, description, and associated tax agency if needed. These manual rates can then be attached directly to products.

Manual rates are helpful when:

You need to apply a specific flat tax rate.
Automatic tax calculation is not available for a particular region or scenario.
You want more direct control over the tax applied to a product.

Settings to Review Before You Begin

For tax support to work correctly in your community, your CRM Payments setup must be properly configured. Before enabling taxes for community purchases, review the following:

Payment Provider: Ensure your payment provider is connected and active.
Automatic Taxes: Decide if you want to use automatic tax calculation and confirm it is configured correctly.

Once your Payments settings are in order, tax support for your community will use those configurations to handle tax collection during checkout.