Taxes
When selling your game on ManaKeep, you may need to charge taxes on your sales. If you do, this guide walks you through setting up taxes on ManaKeep.
Note: This guide is available as a resource, but should not be construed or relied upon in any way as legal or accounting advice. If you have questions about collecting taxes, you can consult with a tax advisor.
Useful Resources
If you need to charge taxes in Canada or the USA, these helpful resources can help get you started:
Country Taxes
Country level taxes will be charged to all customers from the specified country. You can specify a name for the tax (such as GST or VAT), and a rate (such as 5%). Overrides to country tax can be set regionally.
Region Taxes
Region taxes will be charged to all customers from the specified province or state. When creating a region tax you have the option to specify the Tax Method which can be one of the following:
- Added to federal tax
- Instead of federal tax
For example, Canada has a country tax of 5% GST. For the province of BC you add a region tax of 7% PST, and for the tax method you choose "Added to federal tax". This would make the total tax be 12% for customers from BC. Next for the province of Ontario you add a region tax of 13% HST, and for the tax method you choose "Instead of federal tax". Here the total tax for Ontario customers would be 13%.
Local Taxes
In the USA, you can add local taxes by zip code. These taxes will be added on top of any state taxes, and can be specified for a single zip code, or for a range of zip codes.
Tax-Inclusive Pricing
If you enable this feature, your prices will include tax, rather than add them to the price.
- Tax inclusive formula: Tax = (Tax Rate * Price) / (1 + Tax Rate)
For example, if you sell a game for $10 and you charge 5% tax, the subtotal would show as $10, the tax would be $0.50 tax, and the total would be $10.50. If you enable tax-inclusive pricing, instead the tax is calculated to be $0.48, the subtotal price becomes $9.52, and the total would be $10.
