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Collecting Tax on Membership Dues

Learn how to set up and collect tax on your membership dues

Mitch Colleran avatar
Written by Mitch Colleran
Updated over 3 weeks ago

Summary

Join It provides tools for organizations that need to collect tax on their membership dues. Whether you're required to apply sales tax, VAT, or other forms of taxation, our platform makes it easy to manage tax collection and compliance through Stripe.

How to Set Up Taxes

To set up your taxes, follow these steps:

  • Go to the 'Taxes & Settings' Section
    From your Join It Dashboard, navigate to Finance tab in the left-hand navigation menu, then select Taxes & Settings.

  • Create a Tax Rule
    Fill out the form to define your tax rule. This includes setting the Name of the tax, Tax value, Tax ID, and selecting how the taxes / fees are calculated, Once complete, click Set Tax to apply.

Inclusive vs. Exclusive Tax

  • If you check the box for "including tax", the tax amount will be part of the membership price.

  • If you leave it unchecked (i.e., tax is added on top of the membership price), then additional configuration in Stripe is required to ensure proper tax handling and compliance. [See the disclaimer below]

Description of screenshot: Showing the Set Tax & Fee page

Can a Tax ID be added to our Join It invoices?

Yes! You can include your organization’s Tax ID, VAT number, or other key details directly on your invoices using a custom footer via Stripe.

To do this:

  1. Go to your Stripe Dashboard

  2. Navigate to Settings > Invoicing

  3. In the Invoice Footer section, add your Tax ID or any other important information

This footer will appear on all invoices generated through Join It.

📽️ Watch a quick video tutorial on setting this up.

Use Stripe Tax for Automatic Tax Calculation and Collection

For organizations with complex tax obligations—such as those operating across multiple jurisdictions within the United States—Stripe Tax provides an automated solution to ensure accurate tax calculation and collection on membership payments made in USD.

Join It integrates with Stripe Tax as part of our Total and Extra plans, allowing you to streamline tax compliance without manual setup or maintenance.

Why Use Stripe Tax?

  • Automatically calculates the correct tax rate based on the location of your customer

  • Simplifies reporting and compliance with up-to-date tax rules

Example Scenario:

If your organization is located in the U.S. and you have members in different states, each with its own tax rate, Stripe Tax will automatically detect the location of the buyer and apply the appropriate tax. This removes the need for you to manually manage rate tables or jurisdiction rules.

Disclaimer:

Taxes vary based on the nature of your organization/membership, the nature of your tax status, your location, the location of your members, and other factors. These general tax options may or may not work for your specific tax situation. You should consult with your own tax advisor about your obligations with respect to how much tax you need to collect, remit, and report for your event.

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