How are Tax and Fees Calculated?

This article will help you understand how these taxes and fees are calculated when a person registers for an event when tax is enabled or fees have been applied to a chosen payment method.

Tax

You can choose to include tax in your prices or exclude. In the examples below, we have a tax rate of 10%. Let’s say you have an adult ticket price of $110 after tax has been applied.

If you are including tax, when adding a price to your ticket, you would set the price as $110 because you have told the system you are including tax in your price.

If you are excluding tax, when adding a price to your ticket, you would set the price as $100 because you have told the system you are including tax in your price. The $10 tax will be applied to the total of the invoice prior to 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.

If a fee has been configured for a payment method, any transaction made against the method will be calculated to ensure the requested amount is available after fees have been taken. In other words, all fees are passed on to the customer.

As an example lets say you did add a 1.9% + 30c fee to your PayPal payment method. When a registrant goes to make a $100 payment, the total transaction amount will be calculated at $102.25. We then tell PayPal to process the payment. PayPal (along with all other online payment gateways) will charge their fees based on the total amount. If you deduct their fee of 1.9% + 30c (approximately $2.25) from $102.25, you receive $100.

Fees may also have tax applied to them. How the tax amount is calculated depends on the method’s tax settings (included or excluded). If tax is enabled and included, a portion of the fee will be included in the tax total without the fee amount being altered. If tax is enabled and excluded, tax is calculated and charged on top of the fee itself. In the example above, the total charge would be $102.47 if the method was set up to be exclusive of tax.

Last Updated: 23rd March, 2017

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