As a small business owner, you decide how your business operates daily. If you’ve been using Vagaro, you know that you’ve only been able to apply one tax to a single service. After getting feedback from our customers, Vagaro is proud to announce the addition of Taxes & Fees. With this new feature release, business owners can exercise more flexibility & control over their prices, charge the correct tax for a specific region and stay organized for tax season.
What is the Taxes & Fees feature?
With Taxes & Fees, you can accurately tax your services and quickly add fees. Multiple taxes & fee rates can be applied to anything you sell.
Before this update, users couldn’t apply more than one tax rate to a single transaction. In Canada, this posed a problem because there are two types of sales tax rates. In the United States, some states require that services, like tanning, have an additional tax applied separate from the sales tax. Vagaro users can now add up to four tax rates on any one transaction. If a tax does not apply to a specific scenario, it can be manually removed at the checkout screen. With the ability to name tax rates, it will be much easier for businesses to stay organized. And with each tax appearing on an itemized receipt, customers will understand exactly which taxes are applied.
Vagaro users can also create and add custom fees to in-house and online transactions. Before the update, users could not add fees at checkout. Instead, users often had to engage in complicated and often inconsistent workarounds. Now, users can quickly add service fees or any other applicable fees to transactions as necessary. Fees can either be a monetary amount or a percentage. You can add up to five fees to your profile and decide whether they automatically apply or if you’d like to add them manually at the time of checkout.
Why should I use Taxes & Fees?
No matter what industry you’re in, your goal is to make money. As such, you need tools to help track your expenses and manage your profits. Taxes & Fees is an excellent way to reflect the true cost of a service without having to jump through hoops.
Since tax rates can vary greatly depending on a business's location, it’s in a business owner’s best interest to charge the correct tax rate for each transaction. Charging the incorrect tax rate for your area may lead to issues when tax season rolls around. If you undercharge, you may be subject to fees or have to make up the difference yourself when it’s time to file your taxes. If you’ve been overcharging, you may be required to refund the extra tax you’ve collected or submit it to the state.
You can also use fees to cover costs incurred by providing a service. Some salons, for example, participate in a sustainability program and may charge a small Environmental Service Fee to cover the cost of participation. The salon may also have a cleaning fee or processing fee.
How do I add Taxes & Fees?
To add Taxes & Fees to your Vagaro account, simply navigate to your account, click on Settings, find “Taxes & Checkout” under the section categorized as “Things We Sell.” Then, click on Taxes & Fees. Here, you’ll be able to create, modify and name any taxes or fees you’d like. For further assistance, check out this support article.
Use Vagaro to Make Running Your Business Easier
At Vagaro, we prioritize listening to our users' needs. With the addition of our Taxes & Fees feature, you’ll be more organized and less stressed when it comes to ensuring your business’ finances are in order.
Not a Vagaro user? No problem. Try Vagaro for 30 days, free of charge, to see what we’re about. Already with us? Great. If you’re ready for your business to run as smoothly as possible, add Taxes & Fees to your Vagaro account today!
