Why This Matters

By introducing multiple ways for taxes and processing fees to interact, we make it easier for gyms to follow regional regulations and give members cleaner, more transparent checkout totals: no surprises, no compliance headaches.

Step-By-Step How To

1. Financial > Settings
2. Invoice Configurations tab > Credit Card & Bank Processing Fee Settings
3. Choose between three options: Inherit from Invoice, Never taxable, or Always Taxable
4. Save

Scribe

FAQs:

1.  What's the right option for Canadian businesses?
   • Canadian gyms should avoid taxation of processing fees unless otherwise advised by legal counsel. As a result, the correct choice is Never Taxable.
2. Why would I choose Always Taxable?
   • This option locks in a set tax rate on the processing fee that will apply even if there is nothing taxable elsewhere in the transaction. 
   • Tip: This is particularly useful for collecting tax on processing fees when you wouldn't collect tax otherwise, like with the sale of certain foods. 
3. How do I make sure things keep running the same as before Wodify made this update? 
   • The default selection, Inherit from Invoice, is the traditional POPF tax behavior that our clients have already been utilizing. 
   • Tip: This is especially useful for invoices with multiple line items - like if a member wants to add the purchase of a t-shirt to their upcoming membership renewal invoice.
4. What are the differences in options?
   • Inherit from Invoice, which looks at your invoice items to see if any are taxable, and applies tax to the POPF with the same rate as the highest-percentage tax rate of your invoice items.
   • Never taxable, which never taxes the POPF
   • Always taxable, which will require you to enter a tax rate to apply when nothing in your invoice is otherwise taxable.

If you need any additional assistance with taxation or processing fees, feel free to reach out to us at support@wodify.com.