Kajabi Payments sales tax overview

Kajabi Sales Tax helps you automatically calculate and collect sales tax on your products and services. Kajabi partnered with Quaderno (one of the world’s leading sales tax compliance platforms) to enable at-checkout calculation and collection of sales tax factoring in the tax jurisdictions you set up, the product or service (i.e., offer) being sold, and your customer’s location. Kajabi Sales Tax also makes it easy for you to file and remit any sales tax you collect with detailed sales tax reporting. Kajabi Sales Tax does not file or remit sales taxes on your behalf. You are responsible for filing and remitting any sales tax that you collect. Any information on sales tax rules and regulations provided herein is for informational purposes only. It is your responsibility to consult with local tax authorities or a tax professional to determine the relevance of sales taxes to your business, ensure that you charge your customers the correct sales tax rates, and file and remit your sales taxes correctly. If you would like to know more about whether your business and its products and services are subject to sales taxes, check out Quaderno’s Sales Tax Guides.

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Before you begin

Sales tax setup requires a few decisions before you touch any settings in Kajabi. You’ll need to determine:

• Whether you’re required to charge sales tax on what you sell.
• Which jurisdictions (states, countries, and so on) you need to charge in.
• Which products or offers are taxable.

If you aren’t sure, consult your local tax authority or a tax professional. Quaderno’s Sales Tax Guides are a useful starting point. Once you know where you’re responsible for charging sales tax, register with the tax authority in each of those jurisdictions. Each authority issues you a Tax ID, which you’ll need to complete your Kajabi sales tax setup.

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Fees

With Kajabi Sales Tax, you only pay for what you use. The fee is charged per successful transaction and will only apply to transactions for Offers that have Kajabi Sales Tax enabled. Learn more about processing fees.

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Onboard to Kajabi Sales Tax

First, ensure that you have successfully set up Kajabi Payments in your account. Learn more about Kajabi Payments

1. From the Dashboard, click on Settings.
2. Select Tax located under Payment settings.
3. Agree to the Terms and Conditions.
4. Select your default Tax code* and Product type and click Save and Continue.
5. Add your jurisdiction(s) and click Save and Finish.

*The Tax Code and Product type chosen during setup will only serve as the default setting for your offers after you enable them for taxes. You will need to activate Sales Tax for each specific offer. The tax code and product types can be customized for each offer.

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Tax codes

Not sure which tax code applies to your offer? We break down how to choose the right one based on your product type in our digital product sales tax guide. The following tax codes are available to choose from:

• e-Service: for digital goods or services (excluding e-books)
• e-Book: for electronic books
• SaaS: for Software as a Service (a.k.a. on-demand software)
• Consulting: for consulting or other professional services in cases where sales in your own jurisdiction are taxable but sales to other jurisdictions are not taxable
• Standard rate: for any general goods or services not included in the categories above with standard tax rates
• Reduced rate: for any general goods or services not included in the categories above with reduced tax rates
• Tax-exempt: for any tax-exempted goods or services

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Set up additional sales tax jurisdictions

After you’ve registered with the tax authority in any jurisdiction where you are going to charge sales tax and have your Tax ID, you can set up your Kajabi Sales Tax. To set up your tax jurisdiction(s):

1. From the Dashboard, click on Settings.
2. Select Tax located under Payment settings.
3. Under Tax Jurisdiction, click Add Jurisdiction.
4. Enter the jurisdiction information including the tax registration number you received.

Only jurisdictions that are Active based on the entered Valid From and Valid Until date will be factored into the sales tax calculation.

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Enable sales tax on offers

1. From the Kajabi Dashboard, select the Sales tab.
2. Click on Pricing.
3. Select the Offer you’d like to collect sales tax on.
4. Click on the Pricing tab.
5. Click on the Collect Sales Tax checkbox.
6. Click on the Include tax in the offer’s price if you want tax to be inclusive of the offer price, otherwise, it will be tax-exclusive and will be added on top of the price.
7. Select the applicable Tax code and Product type for this particular offer.
8. Click Save on the upper right-hand corner when complete.

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Enable Kajabi Sales Tax on all of your Kajabi Payment offers

1. From the Kajabi Dashboard, click on Settings.
2. Select Tax located under Payment settings.
3. Click Lets do it! on the top banner to start.
4. Select if you would like to include tax in the offer’s price.
5. Select if you would like to automatically convert all your Offers to Kajabi Payments.
6. Click Enable Now to enable Kajabi Sales Tax on all of your Kajabi Payment offers.

Kajabi Sales Tax ensures the accurate application of sales tax for recurring Subscription and Payment Plan transactions by automatically recalculating the sales tax rate before each charge. It factors in your customer’s address and any changes in jurisdictional tax rates, adjusting the sales tax accordingly. This means the sales tax may increase or decrease based on your customer’s location and the relevant jurisdiction.

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Sales tax report

You can view a detailed list of sales tax transactions from your Analytics page. The sales tax report analytic page view can be customized by transaction date, payment type, currency, Offers, Customer Name, and Customer Email. To view your sales tax report:

1. From the Kajabi Dashboard, select the Analytics tab.
2. Scroll down to Sales Tax.
3. Choose a transaction date period or apply a filter, then click Apply to view the results.

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Export sales tax report

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Export from the Analytics page

1. From the Kajabi Dashboard, select the Analytics tab.
2. Once on the Analytics Page, click on Sales Tax.
3. Select the date range and any filters you would like to add, then click Export transactions.

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Export from Transactions

1. From the Kajabi Dashboard, select the Analytics tab.
2. Select Payments.
3. Once on the Payments Overview Page, click on Transactions.
4. Click Export button.
5. Choose Export as CSV or Zip File.
6. Select the date range and click Export.