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 ‘How to Configure Sales Tax’ guide.

What is Tax-Inclusive pricing?

Tax-Inclusive pricing means that taxes are already a part of your product or service’s retail price 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 ‘Tax-Inclusive’ option 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. 

What is Tax-Exclusive pricing? 

Tax-Exclusive pricing means that taxes are not yet a part of 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 ‘Tax-Exclusive’ option 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 total to a retail 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. 

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

If you’d like to change your default tax setting please reach out to [email protected] and we will be happy to assist you.

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 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 wish to update. 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. 

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 ‘Tax-Inclusive’ option 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. 

If you selected the ‘Tax-Exclusive’ option when you set up sales tax in Glofox, you will need to ensure that no tax has been previously included in your prices. If they are 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. 

Where can I see a breakdown of tax? 

You can view a tax breakdown by exporting or downloading any of your transaction reports. Your customers will see a tax breakdown in their cart. Tax breakdown is currently not available on your customers’ receipts. 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 assign multiple tax rates to the same product or service group?

No. At present, you can only assign one tax rate to a product or service group. We are working to make this an available feature but it is not available at present. 

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.

 

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

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