Managing taxes is an essential part of your business operations. You can effortlessly create and manage tax rates directly from HitPay Dshboard. HitPay’s fees are calculated from the total transaction amount, including taxes and tips.
The choice between Tax-Inclusive and Tax-Exclusive Tax impacts how taxes are calculated in relation to the final transaction amount.Tax-Exclusive TaxA Tax-Exclusive Tax is added to the Total Amount at the point of the final transaction.
Example: You may charge #100 for a service and add a 7% GST tax. Adding a Tax-Exclusive GST tax adds an additional #7 at the point of purchase. The Total Amount becomes #107.00.Tax-Inclusive TaxA Tax-Inclusive Tax is already included in the price of purchase.
Example: You may charge #100 for a service with 7% GST included as a Tax-Inclusive Tax. The Total Amount remains #100.Understanding the difference between these tax types helps you make informed decisions when configuring your tax rates in the HitPay app.
Can I view the tax amounts applied to my transactions on my reports?
Yes, on the web dashboard, navigate to Bank Payouts > Transactions > Export Transactions. Make sure you check ‘POS Order Details’ field under Fields Required.
Tax Applied = Name of tax that is applied
Tax Calculated = Nominal amount of tax applied based on tax % and transaction amount
Tax Amount = Amount of tax added to the sum. Inclusive tax will result in 0.