FAQ: Configuring Sales Tax in Glofox

Follow

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 is applied to certain product and service groups in Glofox. This includes Classes, Courses, Facilities, Memberships, Products, and Trainers. Sales Tax is not applied to custom charges. 

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

At present, you can change your default tax setting by selecting either the 'Prices include tax' option, i.e. Tax-Inclusive pricing, or the 'Prices do not include tax' option, i.e. Tax-Exclusive pricing, in the 'Configuration' section of the Tax Settings page. WARNING: You should only change your default tax setting if you are sure that your prices are set up to match the setting that you are selecting i.e. if you choose 'Prices include tax' you should ensure that all of your prices do, in fact, include taxes, or if you choose 'Prices include tax' you should ensure that all of your prices do, in fact, not include any taxes.

TaxConfigurationExclusive.png

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

No. At present, Glofox only supports tax rates on a product or service group level. Any tax rate that is applied to a product or service group will apply to all of the individual products or services that your business sells within that product or service group. You cannot apply a specific tax rate to an individual product or service at present without applying it to the entire product or service group in which it exists. We are working to make this an available feature but it is not available at present. 

Can I delete an existing tax rate?

If you’d like to delete a tax rate please reach out to [email protected] and we will be happy to assist you.

Can I update or edit an existing tax rate?

You can update an existing tax rate. To do so, you will need to delete the existing tax rate that you no longer wish to use. Once the existing tax rate is deleted, you can set up a new tax rate and apply it to the right product or service group. Any products or services within this group will now have the new tax rate applied. If you’d like to delete a tax rate please reach out to [email protected] and we will be happy to assist you.

My tax rates are already included in my business’s prices. How can I assign a tax rate without accidentally adding tax twice? 

If you selected the 'Prices include tax' option i.e. Tax-Inclusive pricing when you set up sales tax in Glofox, your prices will not change when you assign a tax rate. Glofox will assume that all of the prices that you have previously set up are Tax-Inclusive prices. No additional tax will be applied and your customers will receive a full tax breakdown when they add a product or service to their cart. A full tax breakdown will also be available on the customer's sales receipt which they will receive by email

If you selected the 'Prices do not include tax' option i.e. Tax-Exclusive pricing when you set up sales tax in Glofox, you will need to ensure that no tax has been previously included in your displayed prices. If tax is included in your prices already then you will need to edit the prices for each of your products or services so that their prices are exclusive of tax. Once you have done this, and a tax rate has been assigned to each of your product or service groups, your customers will only be charged tax once as part of the total sales price after they add a product or service to their cart. 

If I update the tax setting is updated will this affect existing, active memberships?

The tax on existing memberships will not be impacted. It will remain at the same tax rate charged at the time the membership was purchased.

If existing Glofox customers want to change their tax rates to Tax-Exclusive for any memberships purchased in the future, you will need to update the default Tax-Inclusive setting ('Prices include tax') and set it to Tax-Inclusive ('Prices do not include tax'), the change in tax calculation will come into effect only after the rates have been applied and ‘Prices should not include tax’ is selected.

For newly onboarded studios, the tax will be set during onboarding and will take effect from that point.

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 group?

Yes, you can assign multiple tax rates to a product or service group.

1. Firstly, ensure that you have created multiple tax rates in the 'Tax rates' section of your Tax Settings page in Glofox

2. Then, from your Tax Settings page, scroll down to the 'Products and services' section.

3. Click the 'Edit' button beside the product or service 'Type' that you would like to assign multiple tax rates to

4. Tick the boxes beside the taxes that you would like to assign

5. Click the 'Save' button and all of the ticked tax rates will be assigned to that product or service type

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 assign a 0% tax rate. This can only be applied at the product or service group level at present. 

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

TaxInclusive.jpg

What does a Tax-Inclusive receipt look like?

Tax-Inclusive Sales Receipt Tax Breakdown
receipt-inclusive.jpg

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
receipt-exclusive.jpg

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

Was this article helpful?
0 out of 0 found this helpful

Comments

0 comments

Please sign in to leave a comment.