FAQ: Configuring Sales Tax in Glofox

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How can I make changes to my sales tax settings?

You can access sales tax in Glofox from the 'Tax' tab on your ‘Settings’ page to make any changes to your sales tax settings. For a detailed walkthrough on setting up and editing tax rates in Glofox, you can check out our ‘Sales Tax in Glofox’ guide.

What is Tax-Inclusive pricing?

Tax-Inclusive pricing means that taxes are already included in your product or service’s displayed prices and no more taxes are added to the subtotal of any sale. The total price displayed to your customers will not change when they add a product or service to their cart as tax is included from the outset. 

If you select the 'Prices include tax' option i.e. Tax-Inclusive pricing when you configure tax in Glofox for the first time, the price displayed to your customers for any product or service will include the tax rates that you have set and will not change when a product or service is added to their cart. For example, a product that has a display price of $9.60 and a tax rate of 20% will include a retail value of $8 and a tax amount of $1.60, totaling $9.60 for the customer when they add that product to their cart. 

You can find out more about setting up Tax-Inclusive pricing in Glofox by following our guide on 'How to Set Up Sales Tax in Glofox for Tax-Inclusive Businesses'.

What is Tax-Exclusive pricing? 

Tax-Exclusive pricing means that taxes are not included in your displayed product or service’s retail price. The tax amount is, instead, added to the subtotal of each sale in a customer’s cart before the sale is finalized. The price displayed to your customers will change when they add a product or service to their cart as tax is added to the total price at the cart stage. 

If you select the 'Prices do not include tax' option i.e. Tax-Exclusive pricing when you configure tax in Glofox for the first time, the pre-cart price displayed to your customers for any product or service will exclude the tax rates that you have set. For example, a product that has a display price of $9.60 and a tax rate of 20% will include a pre-tax value of $9.60 plus a tax amount of $1.92, totaling $11.52 for the customer only when they add that product to their cart. 

You can find out more about setting up Tax-Exclusive pricing in Glofox by following our guide on 'How to Set Up Sales Tax in Glofox for Tax-Exclusive Businesses'.

What goods or services does Sales Tax get applied to in Glofox?

Sales Tax can be applied to product and service groups or individual product or service items in Glofox. This includes Classes, Courses, Facilities, Memberships, Products, and Trainers. Sales Tax is also now available on custom charges. 

Is it possible to change your default tax setting from Tax-Inclusive to Tax-Exclusive, or vice versa?

If you want to change your tax mode it is best to reach out to a Glofox admin. They will take you through the process as it could affect the price of your existing subscriptions if not carried out correctly. 

Can I assign a specific tax rate to an individual product or service?

Yes, it is now possible to apply a specific tax rate to an individual product or service e.g. 5% on water and 10% on protein bars.

Can I delete an existing tax rate?

Yes, it’s now possible to delete tax rates in ‘Settings’. The deleted rates will still be displayed on the ‘Transactions’ reports, however, the rate will no longer be assigned to any existing membership or to any future product or service purchase. 

Can I update or edit an existing tax rate?

You can update an existing tax rate. Please be aware that this will update the rate for all associated products and services. With recurring memberships for example, the new rate will be applied to the next subscription cycle.

Where will my customers see a tax breakdown/tax summary for their purchases? 

Your customers will see a tax breakdown in their cart and on their sales receipts which they will receive by email.

Can I view a list of all transactions, including sales tax information for each?

Yes, you can view the tax breakdown of sales transactions by exporting or downloading your transactions reports.

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

Is it possible to import a transactions list, including tax details, into Glofox?
Yes, Glofox supports this. If you compile all of these transactions into a CSV file, we can import this data into our database for you. You should ensure that the CSV file contains columns that include the tax data that was applied to each transaction. For example, a transaction that had two taxes applied (city tax and country tax), we can import this data from the CSV file into our database and it will be available in the 'Transactions' report for you to view at any time from your Glofox Dashboard.

Can I assign multiple tax rates to the same product or service? 

Yes, you can assign multiple tax rates to a product/service group or individual product/service items on the Tax Settings Page in Glofox.

My business is Tax-Inclusive. If tax rates increase, will my customers (who have existing subscriptions) be charged more?

For Tax-Inclusive businesses, a tax rate change will not affect the price that customers are charged. The total price will remain the same but the portion of the price that is tax will change. Your business will need to decide whether it wishes to take on the cost of the tax increase itself or whether to increase the price for its customers to cover the tax increase. 

My business is Tax-Exclusive. If tax rates change, will my customers (who have existing subscriptions) be charged more?

For Tax-Exclusive businesses, a tax rate change will affect the price that customers are charged. The tax increase will increase the overall price. If you wish for your customers to be charged the same price that they were paying before the tax increase then you will need to update your prices so that the impact of the tax change does not increase the total price that your customer pays.

Can I apply Compound Tax in Glofox?

At present, Glofox does not support Compound Tax. 

Is there a tax option for tax-exempt clients?

At present, Glofox does not have a tax-exempt functionality. The current workaround we would recommend would be to adjust the price in the cart.

What is 'Company trading name' and what is its purpose?
You can add a ‘Company trading name’ in the 'Configuration section of your Tax Settings page. This is the legal name that your company is registered as. This trading name will appear on your customers’ receipts so long as you enter it into the space underneath 'Company trading name'. If you do not enter a trading name, the studio name that Glofox has on file for your business will be used as the default.

What is 'Tax ID number' and what is its purpose?

You can add a ‘Tax ID number’ in the 'Configuration section of your Tax Settings page. This is the identification number used by the organization or tax body that enforces taxes in your region. This tax ID number will appear on your customers’ receipts so long as you enter it into the space underneath 'Tax ID number'. If you do not enter a tax ID number, it will not appear on your customers' receipts. It is often good practice to include it on your customer receipts as some customers may use it when accounting for purchases and completing their own end of year accounts.

What does a Tax-Inclusive cart look like?

Tax-Inclusive Cart Tax Breakdown

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What does a Tax-Inclusive receipt look like?

Tax-Inclusive Sales Receipt Tax Breakdown
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What does a Tax-Exclusive cart look like?

Tax-Exclusive Cart Tax Breakdown

TaxExclusive.jpg

What does a Tax-Exclusive receipt look like?
Tax-Exclusive Sales Receipt Tax Breakdown
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For additional support reach out to [email protected] and we will be happy to assist you.

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