How do I turn on sales tax?
Set up Stripe Tax in your Stripe account, then open Settings > Sales tax, choose tax on top or included, tick the box and press Save. Stripe works out the tax.
Stripe Tax works out the right sales tax for every online checkout and front desk sale, and NinjaHQ records it with each payment. You switch it on once, on the Sales tax page.
Before you begin
- You must be an owner, and Stripe must be connected: How do I connect Stripe?.
- Your gym's full street address must be saved under Settings > General. Tax for classes, camps, competitions and memberships is worked out at your gym's address. The page warns you if it is missing.
Steps
- Open Sales tax under Settings. A status bar at the top tells you where you are. If it says Set up Stripe Tax in your Stripe account, do the steps shown on the page:
- In your Stripe Dashboard, open Tax and press Get started.
- Enter your gym's address as the origin address and choose a default tax behavior of Exclusive (tax added on top), unless you want prices to include tax.
- Add a registration for each state where you collect sales tax (for most gyms, your own state).
- Come back to the Sales tax page. The status turns green (Stripe Tax is set up: switch it on below).
- Tick Charge sales tax on online checkouts and front-desk sales.
- Under Prices on Your Website choose Tax is added on top (a $65 entry costs $65 plus tax) or Prices include tax (the tax is taken out of the $65).
- Pick the tax type for Camps and Special Events and for Membership Dues. Ask your accountant, for example whether a camp is childcare or instruction where you are. Competition entries always use "Competition entry (athlete)".
- Press Save. It applies from the next checkout.
What you'll see
- The status bar says Sales tax is on.
- Checkout adds or includes tax. Payments shows "incl. $X tax" and a Sales tax collected tile.
- Front desk sales (Take a payment, cash included, and charges to a card on file) are taxed by each product's tax type. Set that on the product, and choose there whether desk prices include tax.
- QuickBooks gets the tax as a "Sales tax collected" line that goes to a liability account, not income.
- Memberships that were already running keep their price without tax until you move them over. Once sales tax is on, a section called Memberships that started before sales tax was on shows how many are waiting. Press Move them to Stripe Tax. Each member keeps their price and payment date. With tax on top, each member is emailed first, and members with no usable address are listed so you can follow up. The button handles a batch at a time; press it again (Try again) if some remain.
Troubleshooting
The tick box is greyed out. Stripe Tax is not active on your Stripe account yet. Finish the Stripe steps above.
It says "Connect Stripe first." Connect Stripe under Settings > General.
Stripe did not answer. The page shows Stripe's message. Reload in a minute.
I cannot open the page as a manager. Sales tax settings stay with the owners.
Questions
Do I have to collect sales tax?
Ask your accountant. Whether classes, camps, memberships or shirts are taxed depends on your state. If you do not need to collect it, leave sales tax off.
Does Stripe charge for this?
Stripe charges for Stripe Tax per transaction where tax is calculated. See Stripe's pricing page.
Are class packs sold at the front desk taxed?
Not yet. Collect tax on those yourself if your state taxes them.