Creating Tax Codes

Overview

Create a Tax Structure to apply a tax rate to an item. Items may only have one Tax Structure applied to them, the default rate for the enterprise for a tax structure is established here, Rates for tax structures can be overridden at a venue or store level .

link for information on: Tax Exempt Sales

DETAILS

Each Tax Structure must have its own unique Structure Name. This will show up in all reports and tax filters so you should name them carefully. You may also add Tax Labels for display on receipts (tax labels are not shown on reports).Use of the tax label, would be if you sell in an area that required a breakdown of the sales tax. If your sales tax rate is 11% and  "Local Tax" is 8% and "City Tax" is 3%. The breakdown of tax is displayed on the customer receipt and reporting will be at the 11% tax name

If you try to create a tax structure with an existing name a popup will displayed asking you to confirm this activity. It is not advisable to create structures with the same name. This will lead to much confusion when reviewing reports.

Each structure can support two rates if necessary. In Percentage 1, enter the applicable percentage rate for the first rate that will be charged. In Percentage 2, enter the applicable percentage rate for the second rate that will be charged; otherwise it can be left blank.

If the rate on percentage 2 is to be charged on the Amount plus the tax in percentage 1 , then check the Compounded box; otherwise it should be left  blank.

In some instances tax structures are only applicable if the item is priced above a certain amount, if that is the case enter the Minimum Taxable Amount on which the tax structure should apply. The tax is applied to the full item price. If the price of any items associated with this structure is below the minimum amount, no tax will be applied. Tax structures do not consider any minimum transactional amounts only minimum item amounts. The minimum taxable amount can be applied to both Percent 1 and Percent 2.

Example of minimum tax: Percentage 1 is 10% and "Apply Tax1 if over this amount" is $50. The item sells for $200. $200 is taxable at 10% - tax will be $20 (as the item sells for over $50).

You can also select the tax to be applied to "over amount" or "under amount" instead of the full amount.

The tax percentage can be applied to only the amount that is above the amount entered. If the tax rate is 10% and the apply to tax amount is $50.00. If the item is sold for $120.00 the 10% is only applied to $70.00, tax is $7.00

Or 

The tax percentage can be applied to only the amount that is under the amount entered. If the tax rate is 10% and the apply to tax amount is $50.00. if the item is sold for $120.00 the 10% is only applied to $50.00, tax is $5.00.

Click on Save to create the Tax Structure.

Access

Access to this function at an enterprise level is limited by default to the System Administrator and Financial users only. Accounting, store managers and warehouse general managers may modify tax code settings at Venues or Store assigned to them.