Taxes: Implementing Different Tax Types

By Robert | Updated

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After setting a prevailing tax, you can create other taxes for specific products. For example, a business would use this functionality to apply different tax rates for cigarettes and alcohol.

Setting multiple taxes will apply each taxed percentage amount to the base price of the product. For example, if a $10 pack of cigarettes has a 10% state tax and a 5% county tax, the total would be $10 + $1.00 + $0.50 = $11.50.

Note: The new taxes placed on a product will replace the prevailing tax rate unless selected otherwise. If no tax is assigned to a product, then the prevailing tax will automatically apply to that product.


Contents


Creating a New Tax Rate

  1. Log in to the Management Console.
  2. Navigate to Products–>Taxes–>Advanced Tax Settings.
  3. Select Individual Taxes:

  4. Click +Add Tax:

  5. Enter the Tax Name.
  6. Select the method of rounding. Math rounds to the nearest decimal. Ceiling always rounds up:

  7. Click +Add Rate:

  8. Enter the Tax Rate percentage, Effective From date, which is the date the rate becomes effective, and Effective To date, which is the date the rate expires. If the tax rate does not expire, leave the Effective To field blank:

    Note: When setting Effective From and Effective To dates for a tax intended to take effect immediately after another tax ends, use the same date for the old tax's end date and the new tax's start date. This ensures that a tax is always in effect.
  9. Uncheck the Active checkbox if you do not want the tax to be active.
  10. Click Save.

Applying a Tax Rate to Specific Products

After creating your desired individual taxes, create a new tax group for these taxes. Creating a tax group lets you select which items are subject to this tax.

  1. Navigate to Products–>Taxes–>Advanced Tax Settings.
  2. Select Tax Groups:

  3. Select New Tax Group:

  4. Enter the Name of the tax group. Uncheck the checkbox next to Active to make the tax group inactive.
  5. Select the Included Products in this tax group:

  6. Select the Included Taxes for the products in this tax group:

  7. Select the Tax Rule, if any, to use.
  8. Click Save.
  9. Refresh your Point of Sale stations for the new tax group to take effect.

Viewing Taxes Collected by Tax Group

View your Tax Report, which breaks down how you collected your taxes.



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