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’s latest feature allows you to easily apply tax rates on all of the products and services that your business sells. Whether they are physical products in your store or services like memberships, you can assign tax rates at any time through your Glofox dashboard.
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
- 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
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
This type of tax setup is usually for customers inside 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 how to configure Sales Tax for both Tax-Exclusive and Tax-Inclusive customers. 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.
- For US and Canadian customers (Tax-Exclusive), click here.
- For everyone else (Tax-Inclusive), click here.
- If your displayed prices already include tax and you wish to use Tax-Exclusive pricing then you must remove the tax from the prices of each of these products or services by manually 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 the customer's sales receipt which they will receive by email.
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.
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
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.
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.
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.