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Taxes - Overview

Updated

Introduction

This article will instruct you on how to add or edit Tax rates in the PGM. This is especially important in countries, where taxes are not constant for all services and products. Such countries include e.g. India and the USA.

Taxes will be displayed for both Payment Plans and Products, once added into the PGM at the PGM -> Settings ->Support Tools -> Vat Rates.

Please keep in mind that once you change the rate on the setting page, the default vat rate on the payment plan/product configuration page will also change, but you will still be able to adjust it when adding a new payment plan or a product. 

Here, you can see the Tax rate in Payment Plans settings:

Here, you will find Tax rates on the Products settings page: 

  • This article describes how to add and edit Tax rates.
  • This article will be helpful to PG Champion, Administrator, Club Manager, Finance & Accountancy and Club Owner. 

 

Before you start 

This module is not to be used within Australia or New Zealand.

Ensure your user account has the Administrator.SystemSettingsTaxes permission enabled to access this area.

 

Feature Description

In PGM, Taxes can be found in: PGM->Settings->Taxes

 

Settings

The following settings are available when configuring taxes and their specific rates:

  • Name: The display name for the tax category (e.g., "VAT" or "Service Fee"). This field is required and has a maximum length of 100 characters.

  • Date from: The specific date when the tax rate becomes effective. This is a required field.

  • Value: The numerical value of the tax. This field is disabled if No tax value is checked.

  • Value Type: Determines if the Value represents a fixed Amount or a Percentage (%). This field is disabled if No tax value is checked.

  • No tax value: A checkbox used to indicate that the tax rate is effectively zero or null. When checked, it disables the Value and Value Type inputs.

  • Active for all clubs: A checkbox that applies the tax rate to every club in the system.

  • Choose clubs manualy: A multi-select list that allows you to pick specific clubs for the tax rate. This field is hidden if Active for all clubs is checked.

 

Step-by-Step Instructions

Creating a New Tax

  1. Navigate to the Taxes configuration page.

  2. Click the Add tax button located in the header.

  3. In the modal window, enter the Name of the tax.

  4. Click Save to create the tax header.

  5. A notification stating "Tax was successfully saved" will appear upon success.

     

Adding or Editing a Tax Rate

  1. Locate the relevant Tax in the list and click the Add rate button (plus icon) in the actions menu. Alternatively, click Edit (pencil icon) to modify an existing rate.

  2. Select the Date from to establish when this rate begins.

  3. If the tax has a monetary implication, enter the Value and select the Value Type (Amount or Percentage).

  4. If this entry represents a tax exemption or zero rating, check the No tax value box.

  5. Determine the club scope:

    • Check Active for all clubs to apply it globally.

    • Uncheck Active for all clubs and use the Choose clubs manualy dropdown to select specific locations.

  6. Click Save.

  7. A notification stating "Tax rate was successfully saved" will confirm the action.

 

Managing Tax Order and Deletion

  1. To change the display order of taxes, use the Move Up (up arrow) or Move Down (down arrow) buttons located in the tax header row.

  2. To remove a tax entirely, click the Delete button (trash icon) in the tax header dropdown. You must confirm the "Delete tax?" prompt.

  3. To remove a specific rate, click the Delete button (trash icon) next to the specific rate entry. You must confirm the "Delete tax rate?" prompt.

 

Hints

It is worth mentioning how the system calculates the value of a new tax. By default, we provide Gross value for Membership Fee, Admin Fee, or for Product. If you want to use Taxes, then it's highly recommended to switch prices to NET, because if you will change the Tax rates, the if don't have to edit the Gross Value for each Product and Payment Plan with a certain Tax. If the fee is defined as Net cost, then Gross value is calculating automatically once you sell the Product or Payment Plan, so changing the tax value will not require any configuration adjustments.

If your PGM doesn't display this option, then It has to be requested via Get Support. Right after we turn on the setting, you will see a switch between net and gross value.

How Gross Value is calculated by the system?

Let's assume the Net value is 100, VAT rate = 8% and additional Tax=15%. Then, by default, in the PGM we provide Gross Value of the Membership Fee and it will be 123. Both VAT and additional Tax will calculate the Net value from the base price, independently of each other.

Here are the components of the Gross price:

  • Nett value: 100
  • Vat Rate: 8
  • Additional Tax: 15

If your receipt or invoice are not displaying the new Tax value in the right way, please report it to the Perfect Gym Support Team via Get Support. The Invoice or the Receipt form will have to be edited and Taxes will have to be added.

 

Hints

  • Active Rates: Rates that are currently active based on the date are highlighted with green text stating "Currently active".

  • Rate Grouping: Tax rates are automatically grouped by their Date from value to show historical and future changes clearly.

  • Visual Indicators:

    • Percentage rates display with a % symbol (e.g., 23%).

    • Fixed amount rates display with the currency symbol (e.g., 10$).

    • Rates with no value display as "No tax".

  • Ordering Constraints: The Move Up button is only visible if the tax is not already at the top , and Move Down is only visible if it is not at the bottom.

 

Use Case Examples

Example 1: Setting a Standard VAT

  • Goal: Configure a standard 20% VAT applicable to all locations starting January 1st.

  • Settings:

    • Date from: 2024-01-01

    • Value: 20

    • Value Type: %

    • Active for all clubs: Checked

Example 2: Configuring a Fixed Service Fee

  • Goal: Add a $5.00 administrative tax fee.

  • Settings:

    • Value: 5

    • Value Type: Amount

    • Active for all clubs: Checked

Example 3: Creating a Regional Tax

  • Goal: Apply a specific tax rate only to the "Downtown" and "Northside" clubs.

  • Settings:

    • Active for all clubs: Unchecked

    • Choose clubs manualy: Select "Downtown" and "Northside" from the list

    • Value: 8.5

    • Value Type: %

Example 4: Future Tax Rate Increase

  • Goal: Schedule a tax increase from 10% to 12% to happen automatically next year.

  • Settings:

    • Date from: [Next Year's Start Date]

    • Value: 12

    • Value Type: %

    • Note: The system will keep the current rate active until this date is reached.

Example 5: Tax Exemption Period

  • Goal: Create a record for a period where no tax is collected.

  • Settings:

    • Date from: [Start Date]

    • No tax value: Checked

    • Value: (Field becomes disabled)

 

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