How do U.S. taxes work on Freshtix?

Freshtix collects and remits sales tax where required by law. In certain jurisdictions, Freshtix is responsible for calculating, collecting, and remitting tax on ticket sales.

However, you are responsible for understanding your tax obligations in the locations where you host events. Because tax laws vary by jurisdiction, we recommend consulting a qualified tax professional if you’re unsure of your obligations. Freshtix is unable to provide tax advice.

 

Review the Freshtix Terms of Service in My Organization, which authorize us to collect and remit taxes.


Where Freshtix Collects and Remits Sales Tax

In the United States, some states and localities have enacted marketplace facilitator tax laws. Under these laws, a marketplace is defined as a platform that connects buyers and sellers to facilitate the sale of goods or services. In certain jurisdictions, Freshtix is considered a marketplace for tax purposes.

These laws affect how sales tax is handled on ticket sales through Freshtix. If the state where your event is held has adopted marketplace facilitator tax laws, Freshtix may be required to calculate, collect, and remit sales tax on the total amount charged to the attendee (the buyer total), unless your organization qualifies for a sales tax exemption. To certify your tax-exempt status, visit the Tax Settings tab during event setup.

To confirm whether Freshtix is collecting and remitting tax for your event, review your Settlement Summary by selecting the Settlement tile on the event dashboard. If you have questions about tax calculation, collection, or remittance for your event, please contact the Freshtix Client Success team at greenlight@freshtix.com or 678-701-6114.


Check Your Sales Tax Rate

To review your sales tax rate:

  1. Go to My Events and select your event

  2. Navigate to Ticket Types

  3. Select an existing paid ticket or create a new one

  4. Select Pricing

The pricing breakdown shows your ticketing fees, including any applicable taxes, as well as your ticket revenue.

How Tax Affects Your Ticket Revenue

  • Tax added on top of the ticket price
    The tax is added to the total amount charged to the attendee (the buyer total) and paid by the attendee. Your ticket revenue is not affected.

  • Tax absorbed in the ticket price
    The attendee will see $0.00 sales tax at checkout. Your ticket revenue is reduced to account for the tax.

Tax fees are shown in the event’s Settlement Tracker. In states where Freshtix is required to remit taxes, these fees are collected and remitted by Freshtix and are not paid out to the organizer after the event.


Tax Exemptions

If you are a U.S.-based organizer who is exempt from federal, state, county, and/or local sales tax, you may be eligible to have sales tax waived.

Please confirm your eligibility before hosting events with tax exemptions applied.

 


Where Freshtix Does Not Collect and Remit Sales Tax

If your city or state is not listed above, Freshtix does not automatically collect and remit sales tax. In these cases:

  • You may add tax to your tickets manually

  • You are responsible for collecting, reporting, and remitting the tax

If you’re unsure whether you need to charge sales tax, we recommend consulting a tax professional to better understand your obligations. Freshtix cannot provide tax advice.


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