Sales Tax in Glofox

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This article will take you through; 

  1. What is Sales Tax
  2. How to Set Up Our New Sales Tax Feature 
  3. Where can I view a full tax breakdown for all sales?
  4. Sales Tax on Custom Charges 

  5. Next steps and additional support

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’s latest feature allows you to easily apply tax rates on all of the products and services that your business sells. Having taxes correctly set up in Glofox will make doing the dreaded tax submission task a lot easier! 

If you're new to Glofox, it's important to get your taxes set up on the correct tax mode for your region (e.g. tax inclusive or tax exclusive) and assign the tax rates on the Glofox dashboard before you start selling memberships and products. This will ensure that the correct rates are applied and displayed in the shopping cart, on the customer receipt and in your reports. 

Our Sales Tax feature enables you to: 

  • 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 or individual items
  • Maximize sales by having clear pricing displayed to your customers

We support Sales Tax for both Tax-Inclusive and Tax-Exclusive regions. 

What is Tax-Inclusive Sales Tax?

Tax-Inclusive means that your business’s displayed prices include tax and no more taxes will be added to the subtotal of sales at checkout. For example, a product that has a display price of $10 with a tax rate of 20% will remain $10 at checkout because the tax is included in the price.

Tax-Inclusive Cart Tax Breakdown

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This type of tax setup is usually for customers outside of the US and Canada. 

What is Tax-Exclusive Sales Tax? 

Tax-Exclusive means that your business’s displayed prices do not include tax and tax will only be added to the subtotal of sales at checkout. For example, a product that has a display price of $10 with a tax rate of 20% will increase to $12 at the checkout. This is because tax was not included in the displayed price of the product or service.

Tax-Exclusive Cart Tax Breakdown

TaxExclusiveCartFinal.png

This type of tax setup is usually for customers in the US and Canada. 

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 Our New Sales Tax Feature 

Below you’ll find detailed guides on configuring Sales Tax for both Tax-Exclusive and Tax-Inclusive regions. Be sure to follow these steps to make sure that Sales Tax is set up correctly and that you get the most out of Glofox. 

Please note;

  • If you're an existing Glofox customer and your displayed prices already include tax and you wish to use Tax-Exclusive pricing, please contact customer support. They will assist you with the transfer.  Similarly if your prices already exclude tax and you wish to use Tax-Inclusive please contact support to assist. It's important to get assistance for this process, otherwise you risk affecting the price of your memberships and products. 

Where can I view a full tax breakdown for all sales?

You can view the tax breakdown of all sales by exporting or downloading any of your transactions reports.  The transactions report includes all of the transactions for your business and can be easily exported into a CSV-formatted report for use in spreadsheet apps by following the below steps.

1. From the Glofox Dashboard homepage, click 'REPORTS'

2. Then, click 'Report List'

3. From the menu on the left-hand side, scroll down until you see the 'REVENUE' section

4. Click 'Transactions'

5. Select a date range for the transactions that you are looking for

6. Click 'Download' to export a copy of these transactions into a CSV file, including any sales tax data that was applied to each transaction

TransactionListHighlighted.jpg

You should see tax-related columns in the downloaded CSV file detailing the tax breakdown for each sale.

  • Tax Total: The total amount of tax paid on the transaction. 
  • Other Taxes: Depending on your region, you may have a number of different taxes for different products and services. Once you have these taxes set up, each one will appear in its own column with the naming convention you chose when setting up tax rates. Each tax column will display the amount of that particular tax that was charged on an individual transaction, if applicable. 

Sales Tax on Custom Charges 

It's now possible to add taxes (if desired) when checking out an item using the custom charge feature. This means that you no longer need to manually calculate the taxes and you can rest assured that the taxes have been applied as required. This will ultimately improve efficiencies of your tax submission process. 

As long as your taxes are configured on the 'Tax' tab in 'Settings', the taxes will be visible on the custom charge feature. Depending on the tax mode set for your studio/gym, the taxes will be added as inclusive or exclusive. The taxes applied on the custom charge feature will be visible on the 'Transactions' report. 

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Next steps and additional support

Be sure to follow the guidelines to ensure that taxes are applied correctly whether you are operating in a Tax-Inclusive or Tax-Exclusive region.

If you have any more questions about setting up tax rates in Glofox, you can check out our FAQ. 

For additional support reach out to [email protected] and we will be happy to assist you.

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