Add sales tax to your event tickets to comply with state or local regulations. In this article, you will learn how to apply and calculate sales tax on event tickets.
IMPORTANT NOTES:
You can still add Sales Tax even if you have already started selling tickets; however, it will only apply to future ticket sales.
Sales Tax can no longer be applied to existing purchases
Sales Tax can be added to all or selected ticket types
Sales Tax can be charged to the ticket buyer or absorbed by the organizer
VAT and Sales Tax cannot be applied at the same time
If you want to add VAT instead of Sales Tax, click here for more information.
Add Sales Tax on Ticket Sales
Enable Sales Tax
Go to Settings > Payment Processing
Click the Sales Tax tab
Select "Yes, I need to charge tax for this event"
Fill out the required information
Sales Tax Name
Sales Tax ID
Country
Tax Rate - This is the tax percentage, not the tax amount.
Applies to all tickets - check this if you want to add a tax to all paid tickets.
Absorb tax - check if you want the tax deducted from your ticket revenue. Uncheck if you want the tax to be added on top of your ticket price.
Total Sales Tax
To see the total amount of sales tax collected, go to:
Settings > Payment Processing
Under the Payment Options tab, look for the Sales Tax Amount
Sales Tax Report
The collected tax for each attendee should be available in the Registration Data report in Analytics.
Calculating the Sales Tax
The sales tax computation will depend on your setup based on these scenarios:
Scenario 1: Absorb Ticket Fees and Pass Sales Tax to the Ticket Buyer
This scenario applies when you select "Absorb Fees" in the ticket fee settings, and in your sales tax setup, you also choose to pass the tax to the buyer.
This means the buyer will pay only for the ticket price + tax on top. You will shoulder the ticketing and credit card processing fees, which will be deducted from your revenue.
| Formula | Total |
Ticket Price |
| $100 |
Credit Card Processing Fee | 2.9% of Ticket Price + 30 cents | $3.20 |
Sales Tax | 5% of the Ticket Price | $5 |
Revenue from Ticket Price | Ticket Price - CCP | $96.80 |
Total Payment | Ticket Price + Sales Tax | $105 |
Scenario 2: Absorb Ticket Fees and Sales Tax
This scenario applies when you select "Absorb Fees" in the ticket fee settings, and in your sales tax setup, you also choose to absorb the tax.
This means the buyer will only pay the ticket price. You will shoulder the ticketing fees, credit card processing fees, and sales tax, which will be deducted from your revenue.
| Formula | Total |
Ticket Price |
| $100 |
Credit Card Processing Fee | 2.9% of Ticket Price + 30 cents | $3.20 |
Sales Tax | Total Amount - (Total Amount / 1.05) 05 represents 5%
$100 - ($100 / 1.05) | $4.76 |
Revenue from Ticket Price | Ticket Price - CCP - TAX | $92.04 |
Total Payment |
| $100 |
Scenario 3: Pass Ticket Fees and Sales Tax to Ticket Buyer
This scenario applies when you select "Pass Fees on to Ticket Buyer" in the ticket fee settings, and in your sales tax setup, you choose to pass the tax to the buyer.
This means the buyer will pay for the ticket price, and on top of that, they will also pay for the ticketing fees, credit card processing fees, and Sales Tax.
| Formula | Total |
Ticket Price |
| $100 |
Revenue from Ticket Price | Ticket Price | $100 |
Total Amount Without the TAX
We need to compute this to get the base for computing the TAX | (Ticket Price + Stripe $.3) divided by (1 - Stripe 2.9%)
 | $103.30 |
TAX | 5% of the Total Amount Without the TAX | $5.16 |
Total Payment Since TAX will be added on top of the ticket price and AE fees, we need to compute the total amount to be paid, which includes the Stripe % from the TAX. | (Ticket Price + TAX + Stripe $.3) divided by (1 - Stripe 2.9%)
 | $108.62 |
Credit Card Processing Fee | Total Payment - Ticket Price - TAX | $3.46 |
Note: There may be a rounding up of $0.01 in the total amount to account for the possible loss on round-offs for group/bundle tickets.
Scenario 4: Pass Ticket Fees to Buyer and Absorb Sales Tax
This scenario applies when you select "Pass Fees on to Ticket Buyer" in the ticket fee settings, and in your sales tax setup, you choose to absorb the tax.
This means the buyer will pay for the ticket price, and on top of that, they will also pay for the ticketing fees and credit card processing fees.
| Formula | Total |
Ticket Price |
| $100 |
Credit Card Processing Fee | Total Payment - Ticket Price | $3.30 |
Sales Tax | Total Amount - (Total Amount / 1 + Tax %)
$103.30 - ($103.30 / 1.05)
5% of the total amount without tax | $4.92 |
Revenue from Ticket Price | Ticket Price - TAX | $95.08 |
Total Payment
| (Ticket Price + Stripe $.3) divided by (1 - Stripe 2.9%)
| $103.30 |
Note: There may be a rounding up of $0.01 in the total amount to account for the possible loss on round-offs for group/bundle tickets.