-
Nathan SutherlandAsked on January 15, 2019 at 2:24 PM
Tax on Subscriptions - We also need to charge Tax on subscriptions.
-
Welvin Support Team LeadReplied on January 15, 2019 at 3:29 PM
You cannot tax subscription-based payments. We have this note in the guide. It is unlikely to be implemented as it may violate the terms of the payment processors.
-
A1PlumbingReplied on January 15, 2019 at 8:15 PM
Wow, I had no idea. Legally we are REQUIRED to charge tax, so I wonder how folks do this?
JotForm, we use Authorize.net as a processor. Could you point me in the right direction to find the documents from them that prohibit tax on subscriptions?
My workaround:
- Add a "General Area" radio group to the form for the top areas in which we will charge tax, and set the "values" to be the tax percentages (for 8.9%, use something like 1.089).
- Add a "Calculated Total" hidden field above the payment processing area, one for each subscription term length. In our case we have a "Monthly Total" calculated field like "General Area * Monthly Subscription Cost.
- For the subscriptions, set the PRICE to a "Variable Amount", and connect it to the calculated total for the same subscription term.
-
David JotForm Support ManagerReplied on January 15, 2019 at 11:21 PM
I would suggest you to contact them, so they can point you in the right direction to find the documents from them that prohibit Tax on subscriptions.
-
A1PlumbingReplied on January 16, 2019 at 11:24 AM
So I did a few google searches and couldn't find anything AGAINST taxes on subscriptions. I did find a page that shows that it should be included
https://account.authorize.net/help/Tools/Automated_Recurring_Billing/Create_a_New_ARB_Subscription.htm (search the page for "tax")
and also opened a live support with them, in which they replied "We do not have a restriction on Sales Tax, that tax would need to be added to the total amount before submitting the amount to charge to us.".
I realize it might be against other provider's terms of services, so is there any option you could enable it on a by-provider basis?
-
David JotForm Support ManagerReplied on January 16, 2019 at 12:36 PM
I'll forward this inquiry to our back-end team to get a more accurate answer. You will be updated via this thread.
-
A1PlumbingReplied on January 16, 2019 at 2:31 PM
Thank you so much for your attention, I look forward to what they will say!