How to Set Up Sales Tax in Glofox for Tax-Exclusive Businesses (US and Canada)

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This article will take you through; 

  1. What is Tax-Exclusive Sales Tax?
  2. How to Adjust Your Prices to Prepare for Sales Tax
  3. How to Configure Sales Tax in Glofox for Tax-Exclusive Gyms
  4. How to Create a New Tax Rate
  5. How to Assign a Tax Rate to Product and Service Groups
  6. Next steps and additional support

What is Tax-Exclusive Sales Tax?

This article will take you through how to configure Sales Tax for Tax-Exclusive regions, i.e. US and Canada. 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 more information, you can check out our guide to Sales Tax in Glofox and our handy FAQ.

You can check out our video guide or follow the steps below it to configure Tax-Exclusive Sales Tax.

How to Adjust Your Prices to Prepare for Sales Tax

If this is your first time configuring your tax settings in Glofox and your studio operates on a Tax-Exclusive basis, you should initially keep your default tax setting as ‘Prices include tax’ i.e. Tax-Inclusive while you manually edit the prices of your products and services to show their prices without tax.

You need to change the prices of your memberships, credits, and store items to show the price without tax so your clients do not accidentally get charged twice for tax when you enable ‘Prices do not include tax’ i.e. Tax-Exclusive pricing. 

Setting a pre-tax price for a product in Glofox 

ChangePrice.gif

Tips:

  • When changing the prices of products and services it’s best to do this outside of office hours. Select a time when purchases on your website are at their lowest. This will limit any confusion from customers.
  • Have an email or SMS ready to go to alert your clients of the new tax breakdown. 
  • Write down a list of all of your products and services and their pre-tax prices. Have this list ready so you can change your prices quickly to avoid any confusion for your customers. 

How to Configure Sales Tax in Glofox for Tax-Exclusive Gyms

Once you have ensured that your displayed prices do not include any tax i.e. they are pre-tax prices, you can enable ‘Prices do not include tax’ as your tax default from the ‘Configuration’ section of the tax settings page. You can then assign taxes freely. Tax will now be added to the total price at checkout.

The steps below outline how to configure your Gym or Studio as a Tax-Exclusive business. 

  1. From the Glofox dashboard, click the settings icon on the top-right-hand corner of the screen
  2. Then click ‘Settings’
  3. Then click the ‘Tax’ tab 
  4. From here select ‘Prices do not include tax’ 
  5. Add your ‘Company trading name’. It will appear on your customers’ receipts
  6. Add your company ‘Tax ID number’. It will also appear on your customers’ receipts

TaxConfigurationExclusive.png

How to Create a New Tax Rate

The steps below outline how to create a new tax rate in Glofox.

  1. From the Glofox dashboard, click the settings icon on the top-right-hand corner of the screen
  2. Then click ‘Settings’
  3. Then click the ‘Tax’ tab 
  4. In the ‘Tax rates’ section, click ‘Add tax rate’ 
  5. Choose a ‘Tax rate name’ and a tax ‘Rate(%)’
  6. Select the product and service this new Tax Rate applies to
  7. Click ‘Save and close’

How to Assign a Tax Rate to Product and Service Groups 

The steps below outline how to assign tax rates to the products and services that you sell.

  1. Go to the ‘Tax’ settings page in Glofox
  2. Scroll down to the ‘Products and services’ section
  3. Click ‘Edit’ next to the product or service type that you would like to assign a tax to
  4. Select one or multiple tax rates by clicking the box beside each tax rate. A tick will appear in the box when it is selected
  5. Click the ‘Save’ button and all of the ticked tax rates will be assigned to that product or service type

AddingTaxRateTaxExclusiveNEW.gif

Please note;

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. You can view the tax breakdown of all sales by exporting or downloading any of your transactions reports.

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.

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