The POS App allows you to specify up to three different tax rates that will be used on the orders generated by the device. To add a tax rate:
- Tap the “Tax” option in the settings menu
- Enter a name for Tax 1 and enter a percentage rate for that tax.
If your tax area requires multiple tax rates, these can be entered into the Tax 2 and Tax 3 areas as needed. Once the tax rates are set, they will be applied to orders as they are created via the POS App.
At the bottom of the Tax Settings interface, you will see a toggle labeled “Include discount on tax calculation.” This setting will be used for situations where you would like to calculate tax on the order after discounts have been applied to the items on the order.
For example, let’s say that you have an order for a $15 item and the applicable tax rate is 5%. Normally, this would result in a $0.75 tax charge. However, you’ve given the item and additional discount of $5, making the item $10 now.
In the above scenario, enabling the “Include discount on tax calculation” setting will apply the 5% tax on the now discounted rate of $10. ($0.50)