How Do You Calculate & Pay Sales Tax on Kajabi?
When it comes to launching an online course – or any kind of eCommerce platform – sales taxes can be daunting. But don’t sweat it – I’m here to help you navigate through all the nitty gritty details so you can understand the do’s and don’ts of sales tax payments.
If you’re using Kajabi as your eCommerce platform, there are a few key steps you need to take to understand and pay your proper tax. First and foremost, let’s look at the basics so you can get a better grasp of all the big terms and concepts.
Tax Basics
Most states have what’s called a “Sales and Use” tax. This is a type of tax imposed on the end user for the sales of goods and services within a particular state. It’s also imposed on uses within that state for certain goods and services that are purchased out of the state.
The way this tax works is the seller of goods or services is responsible for collecting and remitting the tax to the governing state in which the sale is taking place. This means that if you’re selling goods or services in a state that has a sales and use tax, you’re responsible for charging, collecting and paying it. This might sound a little confusing, and that’s why it’s essential to be up to date with all the sales and use taxes applicable to the states you offer your courses on Kajabi.
Tax Rates & Requirements:
Sales tax rates can vary from state to state, and even between different counties. As an example, let’s say you’re selling a course on Kajabi in California. According to the California State Board of Equalization, you would charge your customer 7.5% for each sale.
It’s also important to know that there might be situations where you don’t have to charge sales tax. Generally, these are transactions where the customer purchasing the item is located in a different state than the business location. In this situation, you would need to either the buyer’s location tax or the seller’s location tax – depending on the situation.
Collecting & Remitting Taxes On Kajabi
Once you’re up to date on all the applicable sales taxes within Kajabi for the states and counties you sell in, you’ll need to set up the appropriate sales tax rates in your Kajabi admin dashboard.
You can do this very easily by just entering in the sales tax rates for each location you offer your digital products. Kajabi makes it easy for you by auto-populating the sales tax rate for each location as the customer goes to purchase your course.
Once you have the appropriate sales taxes setup, you can quickly and easily start collecting and remiting payments to the appropriate state. Kajabi makes it super simple for you by auto-calculating all sales taxes, and you can easily view all payments you’ve remitted in your Kajabi admin area.
Conclusion
As you can see, understanding and paying sales taxes on Kajabi doesn’t have to be the most dreaded part of launching your digital product.
With Kajabi’s convenient and user-friendly dashboard, keeping track of sales taxes is super simple. Now it’s just up to you to stay informed on tax rates and the states you’re selling to so you can start collecting and remitting payments accordingly.
So go ahead and start selling your digital products with total confidence. And know that with Kajabi, you’ll have everything you need to stay up to date on sales taxes and payments. Happy selling!