North American Taxes issue

Hello,

We have been running Fabman for two years now and we are currently working on reconfiguring our packages to reflect our tax rates.

The tax issue is, Fabman is calculating the monthly cost with the tax rate included. For example: We charge $120 a month for a package. In order to collect the local tax rate of 7.5%, we need to charge $129.00 to collect those taxes.

Another issue is when we issue a charge for machine activity/booking free or a custom charge, we end up giving them a 7.5% break due to the way fabman is currently structured. For example, if someone have a $5.00 charge total, in the invoice it comes to a $4.65 charge with VAT added to bring it to $5.00. We as a business end up loosing revenue because of this. This example is a small charge compared to some of our 3D Print charges.

Lastly our customers contact us frequently about the 8% VAT (7.5 rounded up) on their invoice. The rate is calculated at 7.5% but displays as 8%.

With other American makerspaces reaching out about services and how Fabman works, we have had to be transparent about this issue as they would have similar issues locally.

See attached pictures.
Ideally we need to see the invoice to look like the Pending charges page, with the tax being added to the subtotal.

Pending Charges Page

1 Like

Invoice

Hey @adamNDSUinnovation

thank you for the thorough feedback!

Regarding the incorrectly shown tax rate on the invoice: We’ve just released a new version of Fabman that fixes this problem. I’m sorry for the trouble!

All prices in Fabman are currently configured as prices including tax, as it is customary in Europe. For the US, you currently have to add the tax to the hourly rate or booking fee you configure.

For example, to charge $5 per hour (net) with a 7.5% tax rate, you’d have to set the machine usage price to $5.38.

I know that’s unusual in the US and we’re currently working on addressing this problem and other differences between US and European taxes. I’ll let you know as soon as we have a better solution for you.

Please let me know if you have any other issues with Fabman. I’m also open to discussing them in a video call, if you prefer. Just let me know via support@fabman.io when you’re available.

Best regards,
Raphael