Taxes and Fees are added in Settings and can be set to apply to all or a select few products. If a customer purchases an experience that has associated taxes and fees, they will be included as a separate line item in their Payment Summary.
What's covered in this article:
Setting up Taxes and Fees
- Click Settings > Taxes & Fees from the left-hand menu.
- To add a tax or fee, click the blue Add Tax/Fee
- Type in a name for this tax or fee and fill out the terms.
- Select if this is a tax or fee
- From here, you can decide whether the tax or fee is a $ or a %.
- If you choose $ then you can pick if it applies per person, per reservation, or per add-on. You can also choose if it will apply per event or per day.
- If you choose % you can pick if it applies to the entire reservation amount, demographic amount only, or if it applies to add-ons only.
- By default, the tax/fee will apply to all products - To assign a tax or fee to a specific product, toggle off the Select All next to Products and click the pencil icon and then click the 'Select all products' checkbox to uncheck all products and select the products you would like to apply the tax/fee to. Click the blue Confirm button.
- Click the blue Save button.
Note: The term type determines whether the amount is subjected to the Xola service fee. Additionally, any Taxes configured will not be assessed on Fees configured to the experiences as Taxes will only be assessed on the purchase demographic total.
Let’s break it down:
Types of Charges:
- Tax: Does not affect the Xola service fee.
- Fee: Affects the Xola service fee because it’s part of the total booking amount.
Example Breakdown:
- You have a ticket costing $50.
- There’s a $2 fee added.
- There’s a 5% sales tax on the ticket amount only.
Here’s how it works out:
- Sales tax is 5% of $50 (the ticket amount), which is $2.50.
- The $2 fee also needs to be considered in the total for the Xola service fee.
Final Calculation:
- Total ticket amount: $50
- Additional fee: $2
- Sales tax on $50: $2.50
- Total before Xola service fee: $52 (ticket + fee)
- Xola service fee is calculated on $52.
- So, the total amount you’ll pay is $52 (ticket + fee) + $2.50 (sales tax) + Xola service fee on $52.
Tax Promotional Value
When toggled on: taxes and fees will be assessed on the promotional value of gifts and vouchers.
When toggled off: taxes and fees will be assessed on the purchase value of gifts and vouchers. The promotional component will be treated as a discount.
All existing reservations will not be affected when this setting is changed.
Tax and Fee Terms
Per Person Tax or Fee
This is a fee that is charged based on the number of guests in a reservation. This can be set on a Per Event or Per Day basis.
For example, let's say you have a"National Forest Permit fee" of $45 per person. For a reservation consisting of two guests, a "National Forest Permit fee" of $90 ($45 x 2 guests) will be applied to that reservation. If the Per Day option is selected, it will apply the fee on a "per person, per day" basis for products that are more than a day long.
For example, let's say you have a "National Forest Permit fee" of $45 per person per day. For reservations consisting of two guests for a product that is two days in duration, a "National Forest Permit fee" of $180 ($45 x 2 guests x 2 days) will be applied to that reservation.
Per Reservation Tax or Fee
This is a fixed fee that is charged per reservation irrespective of the number of guests.
For example, let's say you have a "Raft fee" of $25 per reservation. For a reservation consisting of 2 guests, a "Raft fee" of $25 will be charged for that reservation. Even if you had 10 guests in that reservation, the Raft fee of $25 will remain unchanged.
Percentage Tax or Fee
This is a dynamic tax/fee that is based on the total dollar value of a reservation. Unlike the previous two fees, this tax/fee is configured as a percentage value.
For example, let's say you have a "State tax" of 10% configured. For a reservation of two guests on a product that costs $100 per person, a "State tax" of $20 ($200 x 10%) will be charged for that reservation. If it were three guests, the "State tax" would be $30.
By default, the percentage tax/fee is applied over the entire value of the reservation. However, you can also choose to have the tax/fee be of the demographic amount only. Doing this will apply the tax/fee only to the demographic amounts themselves and will not apply to any add-ons that the customer opts to purchase.
For example, let's say you have a "State tax" of 10% and select the "Demographic amount only" drop-down option. For a booking of 2 guests (1 adult $100 and 1 Child $50) on a product with add-ons worth $50, the sub-total would come to $200 ($150 demographics + $50 add-ons). The State tax, however, would only be applied on $150 ($200 - $50 add-ons) and would come to $15.
Taxes & Fees in a Purchase
If a tax or fee has been applied to a product in Settings, it will automatically apply when a customer checks out for that experience. If there is only one tax or fee, it will appear as its own line item under the Payment Summary.
When you issue a refund, you’ll also see the tax/fee change according to the configurations set above. For example, if you refund a portion of the booking shown above, the taxes will go from decrease to $10.40 as the tax is set to be applied as a percentage of the reservation amount. Since a refund has taken place and the reservation amount has decreased, so has the tax amount applied to the reservation.