This article will take you through;
What is Sales Tax?
Sales tax is a levy imposed by a country or region’s government on the sale of goods and services. Glofox allows you to easily apply tax rates on all of the goods and services that your business sells. Whether they are physical products in your store or services like memberships, classes, and courses, you can assign tax rates at any time through your member app and dashboard using our tax facility.
Using sales tax with Glofox helps you:
- Stay compliant with the law
- Save time figuring out your tax rates
- Reduce the workload of updating your accounts
- Assign the right tax rates to the right product or service
- Maximize sales by having clear pricing displayed to your customers
We support sales tax for both Tax-Inclusive and Tax-Exclusive regions. If you have any more questions about the distinction between Tax-Inclusive and Tax-Exclusive pricing, you can check out our FAQ.
How to set up Sales Tax in Glofox
When you first set up sales tax in Glofox, you will be asked to select whether your prices are ‘Tax-Inclusive’ or ‘Tax-Exclusive’ under the ‘Configuration’ section of the ‘Tax’ page. This will remain your default tax setting going forward.
Below are the required steps involved in setting up and assigning a tax rate to your product and service groups.
- From the Glofox dashboard, click the menu icon in the top right corner
- From here go to the ‘Settings’ page
- Then go to the ‘Tax’ tab
- From here, ensure all of the Tax rates are accurate for your region
- Next, ensure the Tax Rates are assigned to the correct product and services by scrolling down to Products and Services
- If you want to edit the tax rate assigned to a product or service group, click ‘Edit’ next to one of them and select a new tax rate
- Click ‘Assign Tax Rate’
Alternatively, you can set up a new tax rate and apply it to a product or service. To do that, follow these steps:
- From the 'Tax' tab, click ‘Add tax rate’
- Choose a ‘Tax rate name’ and a tax ‘Rate(%)’
- Select the product and service this new Tax Rate applies to
- Click ‘Save and close’
- If your displayed prices already include tax and you wish to use Tax-Exclusive pricing then you must remove the tax manually from the prices of each of these products or services by updating their prices. Otherwise, your customers will be charged twice for sales tax.
- A tax breakdown will be provided to your customers when they add a product or service to their cart. It will also be available on their sales receipt. You can view tax breakdowns by exporting or downloading any of your transaction reports.
Next steps and additional support
Once you have all of your tax rates set up and they are assigned to the right product and service groups, you can add new products or services to those groups at any time and the correct tax rates will be assigned automatically. Be sure to follow the guidelines outlined above to ensure that taxes are applied correctly whether you are operating in a Tax-Inclusive or Tax-Exclusive region.
For additional support reach out to [email protected] and we will be happy to assist you.