Add tax to your course pricing

In this article: Whether you need to charge sales tax on your courses, and how to handle it if you do.

All Plans

If you're selling courses, you may wonder whether you need to collect sales tax. The short answer: most online course creators don't need to charge sales tax, but it depends on your specific situation. Here's what you need to know.

Ruzuku itself doesn't calculate or collect taxes. Payment processing happens through Stripe or PayPal, and tax handling is managed through those platforms (or your own accounting system) rather than inside Ruzuku.

Most online courses are tax-exempt

In the United States, most live or interactive online courses are not subject to sales tax. Here are the general guidelines (based on the Streamlined Sales and Use Tax Agreement):

Live, real-time courses are not taxed. If you present your course live, with real-time interaction, it's classified as a live educational service.
Interactive courses are not taxed. If participants can connect with each other or with you in real time during the course (through discussions, live sessions, or chat), it qualifies as interactive.
Courses evaluated by a human instructor are not taxed. If an actual person reviews student work (not just automated quizzes), the course falls under this exemption.

Most courses on Ruzuku fit at least one of these categories. If your course includes live sessions, discussions, or instructor-reviewed assignments, you're likely exempt.

Note: Tax laws vary by jurisdiction and change over time. These guidelines are general information, not tax advice. Consult a tax advisor if you're unsure about your specific situation.

How to charge tax if you need to

If you determine that you do need to collect sales tax (for example, for a purely self-paced course with no live interaction in a jurisdiction that requires it), you have two options:

Include tax in your course price

The simplest approach. Set your price point to include the estimated tax amount. For example, if your course is $200 and your estimated tax is $16, set the price point to $216.

This works like a coffee shop that lists prices as "tax included." Your students see one clean number at checkout.

Use Stripe Tax for automated collection

Stripe offers a built-in tax collection feature that automatically calculates and collects the correct sales tax, VAT, or GST based on your student's location. This is the most accurate approach if you sell to students in multiple regions.

Here are Stripe's resources on setting this up:

Frequently Asked Questions

Does Ruzuku handle tax collection?

No. Ruzuku processes payments through Stripe and PayPal but does not calculate or collect taxes. If you need to charge tax, you can include it in your price point amount or use Stripe Tax for automated calculation and collection.

Do I need to charge VAT for students in other countries?

It depends on where you're based, where your students are, and local tax laws. If you sell to students in the EU or other regions with VAT requirements, Stripe Tax can help you calculate and collect the correct amount automatically. Consult a tax advisor for guidance specific to your business.

Can I show tax as a separate line item at checkout?

Not through Ruzuku's built-in checkout. If you use Stripe Tax, Stripe can handle the tax line item on their end. Otherwise, the simplest approach is to include tax in your price point amount and note "tax included" in the price point name or sales page description.