In setting up your services or classes, you will notice that there is a checkbox for whether or not the appointment type is to be taxable or not. This option also exists if you are adding a charge to a client's profile or invoice.
If a service, class or charge is taxable, then the tax rate that you enter in your payment settings screen is the amount of tax that will ultimately be applied. The tax is calculated once the item is on the invoice as a percentage of all taxable items that you have included on your invoice. This means you WILL NOT see the amount of tax that will be collected on a line item when you add a charge to the client's profile. You will only see how much tax is ultimately collected once a line item has been added to an invoice.
The tax rate is applied after any discounts are taken off of the line item. Let's say a client books an appointment with you that costs $100 and uses a $5 off coupon. The new cost of the appointment would be $95.00. If you have a 10% tax rate, then the total tax to be collected would end up being $9.50 (10% of $95.00) and not $10.00 (10% of $100.00).
Should you have a Transaction Fee listed and you have items on your invoice that are taxable, then the transaction fee will also have the tax percentage applied to it. If you have an invoice where no items on the invoice are taxable but does include a transaction fee, then the transaction fee will not get taxed.
Should you have any questions about how the tax rate gets calculated and applied, please contact our support team and we'll be happy to answer them for you.
To actually add your tax rate, follow the steps below -
Once you've entered in the proper tax rate to your payment settings, click on the green Save button near the top of the page -
Now, when you create an invoice and have taxable items on that invoice, you will see the Tax field show up in the invoice summary to include the total amount of tax to be collected on any taxable items on the invoice as well as the transaction fee (should you have a transaction fee amount added) -
This tax amount will also be calculated when clients are paying through your payment portal after booking an appointment.