Taxes for your products can be applied at the time of sales or include your prices.
As a Provider, you will need to charge taxes on your sales, and then report and remit those taxes to your government. Although tax laws and regulations are complex and can change often, Fitchek automatically handles most common sales tax calculations. Taxes will apply on the country or regional level, depending on your local tax laws.
Fitchek uses many default sales tax rates, which are updated regularly. If you use the default rates, then confirm that they are current and correct for your particular circumstances. Please contact us to set up tax overrides if you have unique tax laws and situations.
Fitchek doesn’t file or remit your sales taxes for you. Depending on where you live, you’ll need to register your business with your local or federal tax authority and deal with it directly. However, the calculations and reports that Fitchek provides should help make things easier when it’s time to file and remit your taxes.
You should always check with a local tax authority or a tax accountant to make sure that you charge your customers the correct sales tax rates, and to make sure you file and remit the taxes correctly.
Comparison of tax calculations
Russ and Dan both live in the same region and both offer Personal Training. online stores. The region has a 13% tax rate and allows business owners to choose whether to include taxes in their prices.
Russ doesn’t include taxes in his prices. If he lists a product for $100, then the tax is calculated to be $10, for a total sale price of $110. The formula for this is Total = List Price X (1 + Tax Rate):
$100 X (1 + 0.1) = $100 X 1.1 = $110
Dan decides to include all taxes in his listed prices. If he lists a product for $100, it’s tempting to think that the amount of tax is $10. But that’s not the case. To arrive at a $100 total listed price that includes tax, the tax-included formula is used to calculate the tax portion. The formula for this is Tax = (Tax Rate X Price) / (1 + Tax Rate):
Tax = (0.1 X $100) / (1 + 0.1) = $10 / 1.1 = $9.09
The product price portion is $100 - $9.09 = $90.91
These calculations are performed automatically. The tax amount is shown in the details of all orders so that both Dan and his customers see the actual tax amount charged.
The 15% Fee is made up of
- Fitchek Application Fee: 12% with Stripe. 20% without Stripe
- Stripe Fee: 2.9% + $.30 per transaction
The Fitchek Application Fee is taxed on where you live.