1. What are the different ways to set up taxes for clients?
Clients can set up taxes in three different ways:
System-wide tax: This applies a single tax rate to every customer regardless of their purchase. It's useful for passing on credit card fees, application fees or applying universal taxes like GST or HST.
Location-based tax: Taxes are applied specifically to goods and services at a physical location. This option is ideal for businesses with multiple locations or varying tax rates.
Advanced tax rates: These allow for more customization, such as applying taxes only to specific types of products or services like retail items or memberships.
2. How do I set up a system-wide tax?
Navigate to the Payments section under Settings and select the option to set up a system-wide tax. Enter the desired tax rate, and it will be applied to all transactions across the system. Click this page to see the step by step instructions on setting up location-based tax.
3. How do I set up a location-based tax?
Within the Location under Settings, you can configure taxes to apply only to goods and services at a particular location. If both system-wide and location-based taxes are enabled, they will accumulate unless specified otherwise. Click this page to see the step by step instructions on setting up location-based tax.
4. How do I create advanced tax rates?
Go to Settings and proceed to the Tax section. Create a new tax, name it accordingly (e.g., subscription tax), and set the percentage rate. Then, specify which products or services the tax should apply to, such as retail items, subscriptions, or specific service types. Click this page to see the step by step instructions on setting up location-based tax.
5. Can I customize which products or services are taxed under advanced tax rates?
Yes, you can choose to apply the tax to all products, pricing options (e.g., subscriptions, packages), or specific service types. This allows for fine-tuning tax applicability based on business needs.
6. How do I ensure the tax is applied correctly?
After configuring the tax settings, review and apply the tax. Ensure that the correct products or services are selected for taxation. Once applied, the tax will automatically be included in future purchases. 🙌
7. What happens to existing subscriptions when a new tax is applied?
New taxes will apply to all future purchases. However, existing subscriptions may not be subject to the new tax immediately. Customers with existing subscriptions may need to be migrated to ensure consistent tax application for rolling subscriptions.
8. What if I have further questions or need assistance with tax rules?
If you have any questions or require assistance with setting up tax rules, feel free to reach out for support. We're here to help you navigate and optimize your tax configuration for your business needs. 😊
9. Why isn't my event, class or subscription showing under the dropdown for Taxes?
Events, classes and subscriptions will only show under the Tax section if they were added as a Service Type!