In this article, we’ll explain how Spektrix handles Taxes using the Tax Code in Spektrix.
You’ll find information on how to update Tax Codes for:
We’ve also included information on how to backdate Tax Codes on previously sold items.
REMINDER: This article is applicable to users in the US and Canada. For information about VAT and Spektrix, read VAT in Spektrix (UK and Ireland).
How does Spektrix handle Tax?
You should enter all prices in Spektrix with the Tax included.
If your organization needs to charge Sales Tax, the prices you enter in Spektrix needs to reflect the price with Sales Tax included.
During set up, when you enter prices for your Tickets and items (including Memberships, Merchandise, Delivery, Ticket Commissions and Levy) you will need to manually calculate the tax and include this in the price.
You can only set one rate of Tax per item or Instance. This means that if multiple tax rates apply you will need to manually calculate both rates of tax and include this in the price.
For example, if your Ticket is $30 and your Sales Tax is 5% you’ll need to calculate 5% of $30 and add that to the price.
- Original ticket price = $30
- Tax = 5%
- 5% of $30 = $1.50
- New ticket price = $31.50
This is also true for areas where two or more different tax rates may apply.
For example:
- Original ticket price = $30
- Sales Tax = 5%
- State Tax = 10%
- 5% of $30 = $1.50
- 10% of $30 = $3
- New ticket price = $34.50
In both cases, the new Ticket price is the value you’ll need to enter into your Price List for each Ticket Type.
Reporting on Tax
Whenever you create an Event, Merchandise, Membership, or set a Delivery or Transaction Commission, you’ll choose a Tax Code.
The Tax Code you use will vary based on what you sell, your organization’s location and status.
For example, a non-profit organization may not be liable to pay Tax on Tickets sold for their own Events. Whereas Tax on Merchandise items may apply at the standard rate.
A Tax Code indicates the amount of Tax included in the price of an item. Spektrix Reports use this Tax Code to itemize the Tax included in the price of items in reports.
You can also report on the different levels of Tax charged on different items by using a different Tax Code for each item.
REMINDER: A Tax Code will not add Tax on to the prices of your items. You will need to manually calculate the tax and include this in the price. Tax Codes are used to report on the amount of Tax charged on the item after it has been sold.
When an item is sold, the Tax rate for that item is recorded. This means that you can report on the Tax rate for that item at the time of the sale, even if the Tax rate changes in the future.
If the Tax rate changes, Spektrix will update the Tax rate for each Tax Code and record the new rate on any future sales. Previous sales will not be affected.
Viewing Tax
In the Cart and when customers check out online, itemized Tax is not visible.
For example, lets say you have a $55 Ticket which you’ve manually calculated and included a 6% Sales Tax on. In the Sales Interface, you won’t see the 6% Tax itemized:
However, in reports you can see the Ticket price and Tax separately. In this example, we’re looking at the Event Sales Report (instances summary) of the above transaction. You can see the Value Sold ($110), Tax ($6.22) and Net ($103.78).
Which Tax Codes can I use in Spektrix?
Tax Codes are added to your system during implementation. Your Spektrix system should already contain the Tax Codes your organization needs.
You can apply Tax Codes against Events, Merchandise, Memberships, Delivery and Transaction Commissions.
Some examples of Tax Codes are:
US
- N/A - N/A (not applicable)
- GA - Georgia Sales Tax
- IN - Indiana Sales Tax
- MD6 - Maryland 6%
Canada
- E - Exempt (not applicable)
- GST - Goods and Services Tax Only (5%)
- Z - Zero Rate (0%)
TIP: Ticket Commissions, Agent Commissions and Levies inherit the Tax Rate against the Event Instance and can’t be set separately.
How to change a Tax Code
To change a Tax rate you will need to manually calculate and apply the increase or decrease in cost on Tickets and items where you’d like to make this change.
If you edit the Tax Code of an item or Instance this will not affect the way Tax is displayed on previously sold items in Reports.
When you change Tax Code this will only affect future sales of items and Tickets where the Tax Code is applied. All previous sales will continue to show the previous Tax rate in Reports.
If you want to backdate Tax on previous sales, jump to Backdating Tax for previously sold items.
REMINDER: Choosing a Tax Code will not automatically apply tax to your Tickets or other items. To charge Tax, you will need to calculate the cost of the item plus tax and set this as the price against the Ticket or item in Spektrix.
To edit the Tax Code on Instances, you’ll need to access the Admin Interface.
TIP: To access the Admin menu, you’ll need the Sales Administrator or General Administrator Role on your User Account. If you don’t have this, speak to the Settings Administrator in your organisation.
How to change the Tax Code on Instances
To update the Tax Code on an Instance, follow these steps:
- Search for the Event you want to update
- In the Instances tab, select the Instance
- In the Basic details tab, scroll to the bottom of the screen and click Edit:
- Change the Tax Code using the dropdown box:
- Scroll to the bottom of the screen and click Save:
TIP: You can update the Tax Code on multiple Instances using the Bulk Instance Update Tool.
How to change the Tax Code on Memberships
To update the Tax Code on Memberships, follow these steps:
- Click Subscriptions > Memberships:
- Select the Membership you want to edit:
- In the Basic details tab, scroll to the bottom of the screen and click Edit:
- Change the Tax Code using the dropdown box. Click Save:
How to change the Tax Code on Merchandise
To update the Tax Code on Merchandise, follow these steps:
- Click Other > Merchandise:
- Select the Merchandise you want to edit:
- In the Basic details tab, click Edit:
- Change the Tax Code using the dropdown box. Click Save:
How to change the Tax Code on Delivery Commissions
To update the Tax Code on Delivery Commissions, follow these steps:
- Click Pricing > Other Commissions:
- Scroll down to the Delivery Commissions section.
- Click Edit next to the Delivery Method you want to apply Commission to:
- Choose your Tax Code from the dropdown list and click Save:
How to change the Tax Code on Transaction Commissions
To update the Tax Code on Transaction Commissions, follow these steps:
- Click Pricing > Other Commissions:
- Scroll down to the Transaction Commissions section.
-
Click Edit:
-
Choose your Tax Code from the dropdown list and click Save:
REMINDER: Ticket Commissions and Agent Commissions inherit the Tax Code set against the Event and can’t be set separately.
Backdating Tax for previously sold items
When you edit the Tax Code on an Event, Merchandise Item or Subscription, this takes effect from the moment you save the changes and will only apply to future sales.
If you want to backdate the Tax on previously sold items, our Support Team can action this for you.
Before you contact Support, you’ll need to change the Tax Code set against the item to the one you want to change it to.
Once you’ve changed the Tax Code, contact Support who will backdate the Tax on previous sales for that item.
TIP: If you backdate Tax on previously sold items, you’ll need to reissue any Invoices and run your Reports to reflect the updated Tax Codes.
Summary
The most important things to remember about Tax in Spektrix are:
- When setting up items or Events, you should calculate the price with tax included and enter that into your system.
- You need to select the Tax Code for your tax rate to be able to itemize the net and tax values in reports. If this is multiple taxes you will use a combined Tax Code.
To continue learning about payments, take a look at the Manage payments category on the Support Centre.