This article relates to how you can use our sales tax settings to define the value of the various benefits offered within your tiers.
About setting benefit value, using percentages
You can set benefit values to tell us the relative value of the benefits in each of your tiers. Once you've done this, we'll be able to apply sales tax/VAT to pledges according to the tax treatments of the individual benefits, in places that allow us to do so. And we will know what portion of a given pledge should be taxed.
For example:
- If you have a tier that includes digital content and a sticker, you can adjust the benefit value setting to tell us that the sticker makes up 10% of the value of that tier. Then, in places where the sticker is taxable, but not the digital content, we can apply tax to just 10% of the pledge amount
- If we don't have these percentages set by you, we will have to apply tax to the tier as a single "item", in all locations where sales tax applies to that "item"
To open your sales tax settings:
- In your Creator view on Desktop, select Dashboard from the left-side panel
- Click on the Membership tab under your creator name
- Click Edit below the tier you want to set the tax value for
- Scroll down and click Advanced
- In the Configure VAT section, select the option to Adjust sales tax according to benefit value. You'll need at least 2 benefits before you can adjust benefit values. If you have 1 benefit, it is equal to 100% of the tier value
- You can choose to distribute values evenly between all the benefits in this tier by checking the box next to Distribute values evenly. Or you can specify your own percentages. Adjust the percentage values of your benefits — values must add up to 100% total
- Once you're done, click Save