Studioware Taxation

Studioware offers a lot of flexibility with taxation: global taxes, local taxes, service/class tax and goods/products tax. Depending on your Country and State/Province you will use a combination of the available taxes in Studioware.

Goods/Products and Service/Class Taxes

For any tax you create in Studioware, you will be able to specify if the tax applies to Goods/Products that your business sells, or if it applies only to Classes/Services, or if the tax applies to both.

Global Taxes

If you business charges a single tax regardless of the location of the business, than the tax can be created as a global tax. When creating a global tax, you can specify the name of the tax, the tax rate, and indicate if the tax applies to goods/products, services/classes or both. For example, in United Kingdom there is one tax rate (17.5%) that applies to all goods and services. The tax is called VAT and can be setup in Studioware as a global tax.

In Canada, there are 2 taxes: A Federal tax and a Provincial tax. In Studioware, you could create a Global tax to represent the Federal Tax (and a local tax to represent the Provincial tax).

To create a global tax, follow these instructions:

  1. Click on the "Administration" main menu and "Business Information" sub menu.
  2. Click on the "Add Tax" button.
  3. Enter in the name of the tax (for example, "VAT"), the tax rate (for example, 17.5), and select how the tax is to be applied. Click on the "Save" button to save the new Global Tax.
  4. Using the same interface, you can edit or remove the Global tax.

Changing the Tax Rate

Changing the tax rate on any tax in Studioware will only affect future transactions. The tax rate on any past transaction will not be affected.

Local Taxes

A local tax allows you to create a tax based on the location of your business. For example, consider a business that has 2 locations in United States. One of the locations happens to be in Erie County, New York State and the other location is in Niagara County, New York State. New York State requires a Sales Tax to be collected for products sold at your business. The Sales Tax rate for your Erie County location is 8.75% and the Sales Tax rate for the Niagara County location is 9.25%. Studioware allows you to create taxes based on your locations.

To create a location tax rate, follow these instructions:

  1. Click on the "Administration" main menu and "Locations" sub menu.
  2. Click on the "Taxes" link next to the desired location.
  3. Click on the "Add Tax" button to add a new tax to the selected location. Enter in the "Tax Name", "Tax Rate" and "Applies To" value. Click on the "Save" button to save the new tax.
  4. You can also Edit or Remove any of the selected taxes.

Tax Calculations

When a student is enrolled in a class (or a transaction is manually added to a student/family account), Studioware automatically determines the appropriate tax to utilizes for the transaction and performs the tax calculation. The taxes are posted to the account together with the transaction. If an invoice is created. a tax summary is printed on the invoice.