Tax Settings

Setting up your tax correctly ensures your revenue reporting is accurate and your customers have a transparent checkout experience. This guide will walk you through setting your club’s default tax, overriding rates for specific products and services, and choosing how prices appear to your members.

1. Set Your Global Default Tax

Your Default Sales Tax is the "base" rate. When you set this, it will automatically apply to every new membership, credit pack, product, appointment or fees you create/set.

1. Head to Settings > Club

2. Locate the Default Sales Tax field.

3. Enter your local tax percentage (e.g.for 20%, simply enter 20).

4. Scroll to the bottom and click Save.

2. Set Custom Tax Rates

Sometimes, different items have different tax rates (e.g., products might be taxed differently than gym memberships). You can override the default rate on a per-item basis.

1. Go to Settings and select the relevant tab (Memberships, Products, Credits, or Appointments).

2. Click Create New (or select an existing item to edit).

3. Enter the specific Tax Rate for this item.

4. Automatic Calculation: Enter the price in either the Ex Tax Price or Inc Tax Price field. Gymflow will automatically calculate the difference based on your entered tax rate.

3. Choose How Prices are Displayed

1. Go to Settings > Club

2. Find the toggle for Display Pricing Including Taxes.

   • Select "Yes": Customers see the total price (e.g., $50).

   • Select "No": Customers see the ex tax price, and tax is added at checkout e.g. $41.67 + $8.33 Tax).

3. Click Save.

This setting defines what price the customers will see in all customer-facing areas: on the app and on the website.

4. The Customer Experience (Checkout Summary)

Regardless of how you display your prices (inclusive of tax or exclusive of tax), Gymflow provides a transparent breakdown at the final checkout screen.

Before paying, your customers will always see a Summary including:

• Subtotal: The price before tax.

• Tax: The specific amount of tax being charged.

• Total Amount Due: The final price to be paid.

5. How Discounts Work

To ensure your club remains tax-compliant and maximizes revenue, Gymflow now applies discounts to the Subtotal (the price before tax). This means tax is only calculated on the final amount you actually collect from the member.

Example: £50 Off a £199 Membership

Let's look at how the "50off" promo code from the checkout screen is calculated:

1. The Ex-Tax Price: Your membership starts at its ex-tax value (e.g., £199.00).

2. The Discount: The promo code is subtracted directly from the ex-tax price (£199.00 - £50.00 = £149.00).

3. The Tax: Tax is then calculated only on that new subtotal of £149.00. At a 20% rate, this is £29.80.

4. Amount Due: The final price the customer pays is the discounted subtotal plus the lower tax amount (£178.80).

Why this matters for you: Previously, if you discounted a price that already included tax, you might have still been paying tax on the "full" value. By applying the discount to the ex-tax price first, you only pay tax on the money you actually receive.