Membership and Add-On Tax
Taxes for memberships and add-ons are supported via one of two methods. Understanding which method your club uses determines how taxes appear to members and staff during enrollment.
Method 1: Tax-Inclusive Pricing
Membership and add-on pricing includes taxes — the payment amount displayed on screen and in the contract is the total price with tax already included.
- An advertised (pre-tax) payment amount can optionally be set for display in Online Join.
- This method is the most flexible, allowing clubs to define distinct tax rates for specific memberships or specific add-ons.
- No additional configuration in Tax Settings is required.
Method 2: Calculated Tax Breakout at Enrollment
Membership and add-on pricing does not include taxes — the payment amount displayed is the pre-tax subtotal, and taxes are calculated automatically at the time of sign-up using predefined tax rates set up in Tax Settings.
This method must be enabled for your club by the Client Support team. Contact support here.
When enabled:
- Applicable taxes are calculated using the Tax Type designated for dues and add-ons in Tax Settings.
- Taxes are displayed as a breakout of individual Tax Levels — both on screen during enrollment and on the signed contract.
- Tax Level names (e.g., "GST," "QST") are shown to members at every step.
Current limitations of Method 2:
- All memberships and all add-ons are taxed at the same rates — applying distinct rates to specific memberships or specific add-ons is not currently supported.
- Applying tax to only memberships or only add-ons (not both) is not currently supported.
- Applying tax rates to prorated membership payments is not currently supported.
- Auto Term Renewals are not supported. Clubs set up with auto term renewals should not use this method.
- Point of Sale and offer items can have their own distinct tax rates independent of this method.
To set up a Tax Type for dues and add-ons, see Tax Settings.
Sample screenshots of Tax Types setup, Member Enrollment, Online Join, and add-on signup when using the second method:
Tax Breakout During Online Join
When Method 2 is active, and a Tax Type is designated for dues and add-ons, taxes are calculated automatically and displayed as individual line items throughout the Online Join flow. This applies to:
- New member enrollment
- Existing member renewal (including presets)
- New prospect enrollment
- Lead/prospect conversion to member
Due Today Section
The Due Today section displays a separate line item for each Tax Level in the applicable Tax Type(s), with the calculated amount for that level. The Total Due Today reflects the full sum of offer items, sign-up dues, cardholder dues, promotions, and all applicable taxes.
- If the total tax amount is zero but offer items are included, a Tax line item displays at $0.00.
- If the total tax amount is zero and no offer items are included, no tax line items are shown.
Recurring Dues Section
The recurring dues section (labeled by payment frequency, e.g., "Monthly Dues," "Weekly Dues") is updated to show:
- A Subtotal line item for the combined Payment Dues and Cardholder Dues.
- Individual line items for each applicable Tax Level with calculated amounts.
- The final Per Payment Total reflecting dues plus all applicable taxes.
If total recurring taxes are zero, no tax line items are shown in this section.
How Taxes Are Calculated
Taxes are always calculated on the subtotal after promotions and discounts are applied — never on the original pre-discount price. The applicable rates are determined by:
- The Tax Type designated for dues and add-ons (applies to membership dues and cardholder dues).
- The Tax Type(s) individually associated to each selected offer item (applies to offer items separately).
If an offer item does not have its own associated Tax Type, its tax rate is treated as zero.
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Tax Breakout During In-Club Member Enrollment
The same tax calculation and display logic applies when staff enroll members in-club through Member Enrollment. This covers:
- New member enrollment
- Existing member replacement, renewal, or preset renewal
- New prospect enrollment
- Prospect conversion to member
Fees Due at Sign Up Section
The Fees Due at Sign Up section displays individual Tax Level line items with calculated amounts. The Total reflects the sum of offer items, sign-up dues, cardholder dues, adjustments/discounts, and all applicable taxes.
- If total taxes are zero but offer items are included, a Tax Total line item displays at $0.00.
- If total taxes are zero and no offer items are included, no tax line items are shown.
Recurring Fees Section
The Recurring Fees section is updated to include:
- A Subtotal line item above the Adjustment line for the combined Cardholder Dues and Payment Dues.
- Individual Tax Level line items with calculated amounts below the subtotal.
- The Per Payment Total reflecting the full recurring amount including taxes.
If total recurring taxes are zero, no tax line items are shown in this section.
Tax Breakout on Membership Contracts
When Method 2 is active, membership contracts generated through both Member Enrollment and Online Join use an updated template that displays a full itemized tax breakout.
Offer Information Section
- The Down Payment column reflects the total dues paid at sign-up, inclusive of calculated taxes.
- The Note Total column reflects the total of all dues payments owed over the life of the agreement, inclusive of calculated taxes.
Fees Collected At Signup Section
The previous column-based layout (Promotion, Tax, Admin Fee, Convenience Fee, Amount Collected) is replaced with an itemized summary below the table:
| Line Item | Description |
|---|---|
| Subtotal | Total price of all offer items (bold) |
| Promotion / Adjustment | Total discount or adjustment applied — labeled "Promotion" if negative, "Adjustment" if positive; not shown if zero |
| [Tax Level Name] | Calculated tax amount for each Tax Level — one line per level |
| Admin Fee | Total admin fee applied to all items |
| Convenience Fee | Total convenience fee applied to all items |
| Total Collected | Grand total of all line items including taxes (bold, light grey background) |
Tax line item rules:
- If the total of all calculated tax amounts is zero and offer items are included, a single Tax line item is displayed at $0.00.
- If the total of all calculated tax amounts is zero and no offer items are included, no tax line items are displayed.
- If a Tax Type is not designated for dues and add-ons, taxes are not calculated for dues items.
- If an offer item does not have its own associated Tax Type, its applicable tax rate is zero.
Tax Breakout on Prospect Contracts
Prospect contracts follow the same updated format as membership contracts in the Fees Collected At Signup section, with the same itemized summary layout.
Tax level line item rules for prospect contracts:
- If the total of all calculated tax amounts is zero, a Tax line item is displayed at $0.00.
- If an offer item does not have an associated Tax Type, its applicable tax rate is zero.
French Canadian Support
For clubs with the "Provide member email communication in Canadian French and English" preference enabled, the updated prospect contract template is available in a translated bilingual (French/English) version with all tax breakout changes included.
Frequently Asked Questions
Can I have different tax rates for memberships and retail items? Yes. The Tax Type designated for "dues and add-ons" applies to membership dues and cardholder dues. Individual offer/POS items can have their own Tax Types assigned separately, allowing different rates for different categories.
What happens if I don't designate any Tax Type for dues and add-ons? Taxes will not be calculated for dues line items during enrollment. Taxes will still apply to any offer or POS items that have their own associated Tax Types.
Does enabling this affect historical enrollments or contracts? No. The updated tax breakout applies only to new enrollments processed after the feature is enabled. Existing contracts are not retroactively updated.
Is tax calculated before or after a member's discount or promotion? Always after. Tax is calculated on the subtotal once any promotions or discounts have been applied.
Can I apply tax only to memberships, not to add-ons, or vice versa? Not currently. When a Tax Type is designated for dues and add-ons, it applies to both membership dues and add-ons together. Applying it to one but not the other is not currently supported.
Does the French Canadian contract version include the updated tax breakout? Yes. With the French Canadian language preference enabled, the updated membership and prospect contract templates are both available in bilingual format.
My club uses Auto Term Renewals — can we use Method 2? No. Auto Term Renewals are not supported with the calculated tax breakout method. Clubs set up with auto term renewals should use Method 1 (tax-inclusive pricing) instead.
