Not to sound grim or anything, but as Benjamin Franklin famously put it, “in this world nothing can be said to be certain, except death and taxes”. This inescapable truth is probably the reason many of you asked for the ability to set and add a tax, like VAT or GST, to your prices in Evalato. As always we duly obliged with the latest update to the platform, which brings super comprehensive tax settings to the fold.
The tax settings can be found in Settings > Payments & billing > Tax settings.
What you can do with the Tax settings
First and foremost, you can set a tax that will be automatically applied during the checkout process. The default setting is No tax. If you set a tax, it will be shown and applied when a customer is making a purchase. The main choices when adding a tax are:
Include tax in the total price – the tax you add is calculated in the price of your submission and shown in the first step of the checkout process. For example, you’ve set a submission price of €100 and a VAT of 20%, when buying a submission your customer is shown a breakdown of €83.33 + €16.67 VAT tax (totalling the €100 you’ve set per submission).
Add tax on top of the total price – adds your tax on top of the total price of the purchase, at step 3 of the checkout process, where your customer is required to enter their billing details. This makes the final price of their purchase €120 (€100 for the submission and €20 from 20% VAT)
This makes it easier to automate invoicing by connecting Evalato to an accounting app like Xero, QuickBooks, Zoho Invoice, etc. The tax will be sent as a separate sum to the invoicing solution that you use. A reminder, these integrations can be done by following the instructions in Apps on Evalato’ main menu.
When it comes to country- or region-specific taxes, things can get tricky, so we’re giving you the option to customize tax application further.
Enable custom tax – allows you to specify when the tax should be applied, based on the customer’s billing info and address.
When do you charge the tax and are there exemptions? Like I said, it can get tricky. The best thing you can do is check with an accountant, local tax expert, or financial advisor, to make sure you’re doing everything right. Once you’re familiar with the rules that should be applied in your case, it’s super easy to set the Tax settings for the program in Evalato.
As you can see our tax feature is super flexible and allows you to handle many scenarios. We’re working on some excellent new features and can’t wait to share them with you. In the meantime, we’d love more suggestions, ideas, and feedback from you guys!