This article will help you understand how taxes and fees are calculated when a person registers for an event with tax enabled or fees applied to a chosen payment method.
Tax
You can choose to include tax in your prices or exclude it. Here are examples with a tax rate of 10% and an adult ticket price of $110 after tax:
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Including Tax:
- When adding a price to your ticket, set the price as $110 because the system will include tax in your price.
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Excluding Tax:
- When adding a price to your ticket, set the price as $100 because the system will exclude tax in your price. The $10 tax will be applied to the total invoice before payment.
Fees
You can add fees to specific payment methods so that your registrants pay credit card processing fees on top of their payment. You can add a percentage fee and/or an amount.
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Example:
- You add a 1.9% + $0.30 fee to your PayPal payment method.
- When a registrant makes a $100 payment, the total transaction amount will be $102.25.
- PayPal (or any online payment gateway) will charge their fees based on the total amount. After deducting their fee (approximately $2.25) from $102.25, you receive $100.
Tax on Fees
Fees may also have tax applied to them. How the tax amount is calculated depends on the method’s tax settings (included or excluded).
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Included Tax:
- A portion of the fee will be included in the tax total without altering the fee amount.
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Excluded Tax:
- Tax is calculated and charged on top of the fee itself.
- In the previous example, the total charge would be $102.47 if the method was set up to be exclusive of tax.