Implementing Australian GST in Your Membership Site

For membership sites that operate in Australia or cater to Australian members, understanding and implementing the Australian Goods and Services Tax (GST) is essential.

This guide explains how to apply the 10% GST rate to your membership site, ensuring business tax compliance and a seamless experience for your Australian members.

Add the Australian GST Tax Rate to Your Membership Site

Understanding Australian GST
About the Code Recipe
The Code Recipe
FAQs: Australian GST and Membership Sites
Australian GST: Final Thoughts

Understanding Australian GST

The Australian GST is a value-added tax of 10% levied on most goods, services, and other items sold or consumed in Australia.

For membership sites, you are required to add tax to membership fees if you are registered for GST. Businesses are required to register for GST if your sales into Australia exceed AUD$ 75,000 per annum.

The GST isn’t just a government requirement; it’s a crucial part of transparent pricing and maintaining trust with your members.

Determining if GST Applies to Your Membership Site

Not all businesses need to charge GST. If your organization meets these conditions, GST registration is required:

Australian Businesses: Any organization registered for GST must apply the 10% GST rate to Australian residents’ membership fees.
International Businesses: GST registration is only required if your Australian sales exceed AUD$75,000 per year. Without this threshold or GST registration, GST should not be added to fees for Australian residents.

About the Code Recipe

The code recipe below simplifies the process of adding GST to your membership site. The primary function of this recipe is to:

Adjust the level cost text to inform Australian users about the additional 10% GST.
Add a custom field on the membership checkout page, allowing Australian users to indicate their residency.
Apply the 10% GST during checkout for users who confirm their Australian residency.

The Code Recipe

	<?php
	/*
	Plugin Name: Paid Memberships Pro - Australia GST
	Plugin URI: http://www.paidmembershipspro.com/wp/pmpro-australia-gst/
	Description: Apply Australia GST to Checkouts with PMPro
	Version: .1
	Author: Stranger Studios
	Author URI: http://www.strangerstudios.com
	*/
	/*
	Tax solution for Australia

	This solution assume the GST tax rate of 10% from March 15th, 2017. Ask your accountant how much tax you must charge.
	More info: https://www.business.gov.au/info/run/tax/register-for-goods-and-services-tax-gst

	Edit as needed, then save this file in your plugins folder and activate it through the plugins page in the WP dashboard.
	*/
	//add tax info to cost text. this is enabled if the Australia checkbox is checked.
	function agst_pmpro_tax($tax, $values, $order)
	{
	$tax = round((float)$values['price'] * 0.1, 2);
	return $tax;
	}

	function agst_pmpro_level_cost_text($cost, $level)
	{
	//only applicable for levels > 1
	$cost .= __(" Customers in Australia will be charged a 10% GST.", 'pmpro-australia-gst');

	return $cost;
	}
	add_filter("pmpro_level_cost_text", "agst_pmpro_level_cost_text", 10, 2);

	//set the default country to Australia
	function agst_pmpro_default_country($country) {
	return 'AU';
	}
	add_filter('pmpro_default_country', 'agst_pmpro_default_country');

	//add AU checkbox to the checkout page
	function agst_pmpro_checkout_boxes()
	{
	?>
	<table id="pmpro_pricing_fields" class="pmpro_checkout" width="100%" cellpadding="0" cellspacing="0" border="0">
	<thead>
	<tr>
	<th>
	<?php _e('Australian Residents', 'pmpro-australia-gst');?>
	</th>
	</tr>
	</thead>
	<tbody>
	<tr>
	<td>
	<div>
	<input id="taxregion" name="taxregion" type="checkbox" value="1" <?php if(!empty($_REQUEST['taxregion']) \|\| !empty($_SESSION['taxregion'])) {?>checked="checked"<?php } ?> /> <label for="taxregion" class="pmpro_normal pmpro_label-inline pmpro_clickable"><?php _e('Check this box if your billing address is in Australia.', 'pmpro-australia-gst');?></label>
	</div>
	</td>
	</tr>
	</tbody>
	</table>
	<?php
	}
	add_action("pmpro_checkout_boxes", "agst_pmpro_checkout_boxes");

	//update tax calculation if buyer is Australian
	function agst_region_tax_check()
	{
	//check request and session
	if(isset($_REQUEST['taxregion']))
	{
	//update the session var
	$_SESSION['taxregion'] = $_REQUEST['taxregion'];

	//not empty? setup the tax function
	if(!empty($_REQUEST['taxregion']))
	add_filter("pmpro_tax", "agst_pmpro_tax", 10, 3);
	}
	elseif(!empty($_SESSION['taxregion']))
	{
	//add the filter
	add_filter("pmpro_tax", "agst_pmpro_tax", 10, 3);
	}
	else
	{
	//check state and country
	if(!empty($_REQUEST['bcountry']))
	{
	$bcountry = trim(strtolower($_REQUEST['bcountry']));
	if($bcountry == "au")
	{
	//billing address is in AU
	add_filter("pmpro_tax", "agst_pmpro_tax", 10, 3);
	}
	}
	}
	}
	add_action("init", "agst_region_tax_check");

	//remove the taxregion session var on checkout
	function agst_pmpro_after_checkout()
	{
	if(isset($_SESSION['taxregion']))
	unset($_SESSION['taxregion']);
	}
	add_action("pmpro_after_checkout", "agst_pmpro_after_checkout");

view raw pmpro-australia-gst.php hosted with ❤ by GitHub

Adding the Recipe to Your Website

You can add this recipe to your site by creating a custom plugin or using the Code Snippets plugin available for free in the WordPress repository. Read this companion article for step-by-step directions on either method.

The code recipe will automatically add an option for users to check if they are Australian residents during checkout.

If members check this option, the system will automatically add a 10% GST to the total cost of their membership.

The updated cost, including the GST, will not be immediately visible to the user before finalizing their membership purchase. However, it will be included in the final price they pay for their membership.

FAQs: Australian GST and Membership Sites

Are there exemptions to the GST?

Certain products or services may be exempt. It’s best to consult with a tax professional for specific cases.

Can members claim GST refunds?

Generally, GST on membership fees is not refundable. However, business members may claim credits for GST paid on their membership fees.

How do you handle GST for different membership levels?

You should uniformly apply the standard 10% GST rate across all levels.

Do all international businesses need to charge GST to Australian residents?

Only if the business meets the AUD$75,000 threshold for Australian sales and is registered for GST. International businesses that do not meet this threshold are not required to charge GST to Australian customers.

Australian GST: Final Thoughts

Implementing Australian GST correctly is crucial for membership sites with Australian users. It ensures compliance with local tax laws and maintains transparency with your members.

You can follow this guide to start accepting the 10% GST in your membership site, but please seek professional advice from local tax professionals to fully understand all the factors of GST, including your reporting responsibility.

You can also contact the Australian Taxation Office (ATO) GST for more information and help.

Author: Kim Coleman

Kim Coleman is the co-founder of Paid Memberships Pro, the most trusted membership platform, which powers over 90,000 membership sites worldwide. With over two decades of experience in development, management, and marketing, Kim plays a pivotal role in shaping the product and guiding the team.

She specializes in content creation, video tutorials, and frontend development for the core open-source plugin and its various Add Ons, helping businesses of all sizes build and grow their membership sites.

View more articles by Kim Coleman »

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