How do I set up cancellation rules for a service?

About configurable cancellations

With configurable cancellations, you set individually for each service under which conditions your customers can cancel a booking. That way, you can adapt your rules to the reality of your business. A short yoga class needs different cancellation rules than a demanding personal training appointment or a multi-day workshop.

The feature helps you cushion cancellations financially while offering your customers clear and fair rules. All conditions are displayed transparently on your public booking page before a booking is completed.

Where to find the settings

In your dashboard, open the section Services > Manage services and select the service for which you want to define the rules. Within the service, you'll find the new Settings section. Here you control the behavior of the service, including its visibility, the service type and the cancellation rules.

Default behavior without configured rules

If the Configurable cancellations option is disabled, the service follows the default behavior. This means: Your customers can cancel their booking free of charge at any time, without any restrictions. So if you're comfortable with this setup or want to offer your customers maximum flexibility, you don't need to change anything here.

Activating configurable cancellations

When you enable the Configurable cancellations checkbox, three additional fields appear that let you define the rules for this service precisely. The settings apply only to the respective service. That way, you can choose a suitable model for each offer.

Free cancellation up to before start

In this field, you define how long before the scheduled start a free cancellation is possible. You can choose between the following time periods: 1 hour, 2 hours, 6 hours, 12 hours, 24 hours, 48 hours, 72 hours and 1 week.

If you choose 24 hours, for example, every customer can cancel free of charge up to 24 hours before the appointment starts. All cancellations within this time window automatically fall under the rule you define in the next field.

Late cancellation

Here you determine what happens if a cancellation takes place after the free cancellation window has passed. Several options are available to you:

  • No refund – the booking is cancelled, but the price is retained in full.
  • Fixed amount is retained – you define a specific amount that's kept in case of a late cancellation. The rest is refunded.
  • Percentage is retained – you define a percentage of the booking price that's kept. The remaining amount is refunded.
  • Cancellation not possible – after the deadline, no cancellation is possible anymore. The appointment remains booked.

Which model you choose depends on your business and your customers. A percentage-based fee often feels fair, while a fixed amount provides clarity.

Tax treatment of the fee

If you retain an amount in case of a late cancellation, it needs to be treated correctly for tax purposes. In this field, you define how the retained fee is classified from a tax perspective. Two options are available to you:

  • Non-taxable (compensation) – the retained amount is treated as compensation for damages. In this case, no VAT applies, because legally speaking no service was rendered.
  • Taxable service – the retained amount is treated as payment for a service rendered. In this case, VAT applies and the fee is reported accordingly on the receipt.

Slotlify takes this setting into account automatically when generating the associated receipts. That way, your bookkeeping stays clean and you don't need to worry about the correct tax classification yourself.

Note: The specific tax classification of cancellation fees can vary depending on the individual case. In case of uncertainty, we recommend a brief consultation with your tax advisor so that you can choose the option that suits your business. Please note that the legal references above apply to German law only.

Tip for everyday use

Communicate your cancellation rules openly and make them easy to find. Slotlify shows them to your customers during the booking process. If you also mention them in your terms and conditions or on your service page, you avoid follow-up questions and build trust. Clear rules from the start are the best protection against misunderstandings and unpleasant discussions later on.