Setting up Item Specific Tax Rates
Once the prevailing tax has been set in place, it is possible to create other taxes to be applied to other products as products are not limited one tax group or one specific tax. For example if a business has a different tax rate for cigarettes and alcohol, this functionality would be used. Setting multiple taxes will apply the each taxed percentage amount to the base price of the product. For example if a $10 pack of cigarettes had a 10% state tax + 5% county tax, the total would equate to $10 + $1.00 + $0.50 = $11.50. Make note, the new taxes placed on a product will replace the prevailing tax rate unless selected otherwise. If no tax is assign to a product, then that product will automatically be assigned the prevailing tax.
Follow these instructions below to create a new tax and assign it to specific products
- Login to the Management Console
- Navigate to Products–>Taxes–>Individual Taxes
- Enter Tax Name
- Rounding: Math–> rounds to the nearest decimal. Ceiling–> Always rounds up
- Select Create
- Enter Tax Rate
- It is possible to enter the dates the tax is to be effective for temporary taxes. Leave "Effective To" date blank if the tax is to be ongoing.
- Select Save
Once the desired Individual Taxes have been created it is now time to create a New Tax Group
- Select “New Tax Group”
- Enter the name of the new tax group then hit “+ Create”
- Check on the individual taxes for the Tax Group.
- Create a new individual tax below by entering the name and percentage rate then “+ Create” or follow steps above.
- Select the products above to apply the new tax rate above
- Select which taxes are to be applied to the selected items
- Once finished, select to save
To view the tax report go here where it breaks down how you collected your taxes.