Learn how to configure tax settings from the Taxes tab, including opting out for select inventory, opting out post booking, removing tax from a booking, and configuring the Booking Fee calculation method.
New to Ecommerce Setup? Read the first article in this series for an introduction to Ecommerce Setup.
Which plans include this feature?
Legacy: Soho, Pro, Plus, Enterprise, Flex*
New: Starter, Growth (Subscription), Growth (Per Booking)*, Managed.
*The Booking Fee is exclusively available with the legacy Flex or new Growth (Per Booking) plans.
→ Learn more about our new plans or how to change your plan.
Where can I find this feature using the top menu?
Manage > Ecommerce Setup > Taxes
What more do I need to use this feature?
Admin permissions configure Taxes and Inventory. Restricted permission to Modify Taxes can be assigned independently.
Which Checkfront version supports this feature - classic, new or both?
- This feature is available in both our classic version using items (Inventory > Items) and our newest version using products (Inventory > Products). → Learn more about products
Ecommerce setup taxes overviewBack to top
You can define any applicable taxes or service fees you must collect here. Taxes configured apply to all inventory items/products, although they can also be disabled per category or item/product within tax settings.
By default, all Enabled taxes display. You filter the tax list by tax status: Enabled, Disabled, or All.
The following information displays for each tax configured: ID, Name, Amount, Type, Applied (to), Account Number, and (Display) Order. We describe the settings this data matches below under Tax Setup.
You can sort the list in ascending or descending order. By default, the list sorts by tax name in ascending order (A-Z).
To configure a new tax in your system, click the +Create Tax button in the left sidebar.
Setting up taxesBack to top
You can open the tax setup modal from the +Create Tax button or access it by editing an existing tax.
Entering a tax name
Choose a name for your tax. This shows on your invoices and reports, so select a name that makes sense to you and your Customers.
Configuring the tax amount
The amount of tax you want to apply to the bookings. Select the $ (adjust by a fixed amount) or % (adjust by percentage) button and enter an applicable figure in the text field.
Select a type from the dropdown menu that shows if you are choosing a fixed amount. The options currently available are as follows: Percent, Flat Fee per Booking, Flat Fee per Item/Product, Flat Fee per Days, or Flat fee per Quantity.
Entering a tax account number
If you have a tax account number you need to show on your invoices, enter the value here.
Choosing taxable customers
Here you can have the tax apply to specific Customer segments.
You can apply the tax to all customers, only customers residing in your province/state/county, only customers living in your country, or only international customers. This is based on the locale settings in your system.
For step-by-step instructions on how to set up a location-specific tax, please see the following help article:
Configuring additional tax options
You can choose an additional tax Calculation Method here. Select either a Compound or Inclusive tax.
A compound tax is applied on top of already taxed inventory.
An inclusive tax is already included in the inventory's price.
For inclusive taxes, you can also select the Hidden to Guest option to prevent the tax from showing on Customer invoices.
The inventory item/product must be configured to charge tax. If it is not, the tax does not apply, regardless of your setting.
Applying tax to inventory
Click the arrow to expand the inventory list and select which item/product is tax applicable. Check the box labelled Apply By Default (Opt out) to automatically add the tax to new items/products in your inventory.
Opting out of taxes for select inventoryBack to top
New taxes apply to all items/products in your inventory by default.
You can remove taxes from specific items/products by turning them off in the item/product's Pricing tab (Inventory > Items > Edit Item or Inventory > Products > Edit Product). Click the status button to turn it off.
Opting out of tax post bookingBack to top
You can opt out of a tax after a booking has been created.
This is done per item/product basis by clicking on the Edit tab while viewing a booking, locating the required item/product, and clicking the Change button.
You can uncheck the taxes you wish to remove in the Change Item window. Click the Save button when finished.
This process removes the applicable tax for that item/product only. Any other items/products in the booking that are also opted into that tax remain opted in unless you repeat the process and remove the tax manually.
Removing a tax from a bookingBack to top
If you wish to remove a tax from a booking, click the Remove button in the main tax table under a booking's Edit tab.
This process removes that tax from all the items/products in the booking previously opted into the tax. The invoice total is then updated.
When editing an item in a booking via the invoice, the following rules are valid:
- Parent items only show the taxes that apply to them, not to their children
- Child items only show the taxes that apply to them, not from their parent
- Changing a parent item's taxes should affect only the parent.
Children should have the same taxes as before the parent was saved.
Currently, the products do not support Product Grouping (parent and child setup).
A Remove button for each tax appears on the main Invoice page (not the item/product edit modal). Clicking this option removes the associated tax from all items/products in the booking.
Configuring the Booking Fee Calculation MethodBack to top
If your account is on our legacy Flex or new Growth (By Booking) plan, you can see the Booking Fee listed alongside any configured taxes. This Booking Fee is used to collect payment for the cost of Checkfront services.
While the Booking Fee is active by default, you can configure the Booking Fee Calculation Method as follows.
- Start by clicking the name of the Booking Fee to access the Edit Tax modal.
- From the Edit Tax modal, consider your Calculation Method options.
By default, the Booking Fee is not set to inclusive. The Booking Fee is configured to be added to the invoice's Sub-Total. The amount is displayed before the booking Total within the Create Booking, Payment, Booking Summary, and Booking Invoice pages.
Select the Inclusive checkbox if you want the fee to display after the booking Total within the Payment, Booking Summary, and Booking Invoice pages. In this case, the Booking Fee is not charged on top of the Sub-Total, as it is presumed that the tax is already included in the product's asking price.
Choose to set the Booking Fee as Inclusive and Inclusive Hidden to Guest if you need to hide the booking fee on the invoice.
In all three cases, Stripe automatically deducts the fee from the amount paid and remits the amount to Checkfront.
- Save or Update your Booking Fee to save your changes.
When booking, the Booking Fee is displayed to Guests and can be reported via the Transaction report (Reports > Transaction). The Booking Fee is non-refundable at this time.
Learn more about Booking Fees here: