Do you need to add Sales Tax to purchases for either Retail Products or Services/Memberships and Packages? Yes you can!
To enable/turn on Sales Tax for your business, head to the 'Admin' section, then look for 'Sales Tax' under the 'Products and Services' menu.
Choose 'Sales Tax', then turn it on. You'll be prompted to enter a Sales Tax amount in percentages, this should be the percentage you want to add for each purchase (you'll tell us WHICH items you want taxed later in this setup). In this setup guide, we've chosen a Tax Rate of 8.75%.
Now that we've got Sales Tax turned on, there are three items we can enable Sales Tax for. These include:
- Retail Products
- Services (Classes, Appointments)
- Packages and Memberships
Purchases of any of these items can be specifically turned on or off, so you can add Sales Tax to specific items and leave it off for others. In this example, let's look at how to add Sales Tax for each type of item.
Retail Products are just how they sound, products that you're selling from your business, such as water bottles, yoga mats, t-shirts, etc. Typically, you want to add Sales Tax to these items. To do this, click on the 'Retail Products' section under Products and Services. Then, choose a Retail Product or create one. On the add or edit page, you'll find the 'Sales Tax' option, as shown below:
Once you turn 'on' Sales Tax for this retail product, when you or your client makes a purchase of this item through Fitli, Sales Tax will automatically be calculated and added to the purchase. This breakdown will also show up in your Sales Report (see below under Reporting).
You can also add Sales Tax to purchases of Services (also known as Classes and Appointments). This would be adding Sales Tax to the drop-in price/purchase for a single class or appointment. This will also automatically be added to the purchase price and shown on your Sales Report.
To add Sales Tax to an existing or new Service, click into 'Services' under Products and Services, then either add a new Service, or edit an existing Service. Once in the add/edit section, turn the 'Sales Tax' option on. Then, once your clients make a 'drop-in' purchase for a Service, the Sales Tax will be automatically added. This Sales Tax will also be shown on your Sales Report.
Packages and Memberships
You can also add Sales Tax to your client purchases of packages/memberships. Click into the Package and Memberships section under Products and Services. Then, click into an existing Package/Membership, or add a new one. Once on the add/edit screen, use the 'Sales Tax' option to turn on adding Sales Tax. Once your client purchases the package or membership, Sales Tax will automatically be added to the purchase. Also, the Sales Tax amount will be displayed in your Sales Report.
Purchase Sales Tax Calculation
During the purchase process, if you have Sales Tax enabled, you and your clients will see the Sales Tax amount automatically added. As shown below, the Sales Tax amount is calculated based off the amount of the purchase and the tax amount you entered in the first step of setting up Sales Tax for your business.
After completing a purchase, you will see the transaction appear in your Sales Report, with Sales Tax included! If you aren't using Sales Tax, this column will not be displayed.
We've also updated the email notifications you and your clients receive when purchasing an item with Sales Tax, and we break down the tax amounts for transparency.
Also, when you request a refund on a purchase that included Sales Tax, the Sales Tax percentage will be automatically displayed and calculated. If you choose to request a partial refund, then the amount of Sales Tax refunded will be calculated accordingly.