Taxes

Set up tax rates for classes, memberships, and retail, including tax-inclusive pricing.

Arketa supports tax collection on pricing options and retail products. Tax rates can be set globally or per location.

How taxes work

When a tax rate is applied to a sale, the tax is calculated on the item price only — not on Arketa's own transaction fees.

Stripe does charge its processing fee on the full transaction amount, including tax. For example:

Item price: $100
Tax (10%): $10
Total charged: $110
Stripe's processing fee is calculated on $110

Set a tax rate

You can add a tax rate directly on each pricing option or retail product when creating or editing it. Enter the percentage (e.g., 8.5 for 8.5%) in the tax field.

[IMAGE TODO] Take a screenshot showing the tax rate field on a pricing option or retail product edit form, with a sample percentage entered (e.g., 8.5).

For location-based tax, set a tax rate in Settings → Locations on the specific location. This rate applies to all point-of-sale transactions at that location.

Tax-inclusive pricing

When tax-inclusive pricing is enabled, the price shown to clients already includes tax — there's no separate tax line at checkout.

To enable:

Go to Settings → Business → General
Scroll to Legal & Compliance
Toggle on Tax-inclusive pricing

[IMAGE TODO] Take a screenshot showing the Legal & Compliance section under Settings > Business > General with the "Tax-inclusive pricing" toggle highlighted and turned on.

When enabled, a $100 class with 10% tax is displayed as $100 (tax included). The Stripe transaction fee appears as a separate line item at checkout.

Through point of sale, the inclusive tax amount is shown separately in the receipt breakdown.

Taxes and payouts

Taxes collected are included in your gross revenue and passed through with your payouts. Arketa does not withhold or remit taxes on your behalf — that's your responsibility. Consult a tax professional for guidance on your specific obligations.