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Taxes

The system supports four types of taxes - 'GST/VAT', 'GST Ex Sell Price', 'US Sales Tax' and Taiwan.

Each country generally has its own tax system. It will have a specific model of tax, for example GST/VAT, and specific terminology for its taxes. The system allows you to set up a tax system for each country you work in. Each location is then assigned a tax system. So you could have five locations using the Australia tax system and ten locations using the UK tax system. The tax systems are set up using the Tax Systems function.

Each tax rate is set up as a tax code, for example AGST=10%, UKVAT=15.0%. These tax codes can be assigned to the tax systems as the default tax rates for items sold within that tax system. You need to set up a tax code for each specific tax rate that can be charged. The tax codes are set up using the Taxes function.

When a new item is created, the system will automatically create a tax entry for each available tax system. For example, you might end up with a tax system record for Australia showing a tax code AGST at 10% and a tax system record for UK showing a tax code of UKVAT at 15.0%. These details can be edited for each item. So you might have one item which keeps the default tax details. But you might have a basic food item which is tax free in Australia. In this case you would edit the item and change the tax code for the Australian tax system.

Tax Types

Sell Includes Tax + Fees

This is a GST/ VAT style tax system. Sell prices are inclusive of taxes and service fees.  

Sell Excludes Tax + Fees

This is a GST/ VAT style tax system. In this case, the sell price is exclusive of all taxes and service fees. The taxes and service fees will be displayed at the end of the transaction and added to the subtotal.

Sell Includes Tax/ Excludes Fees

This is a GST/ VAT style tax system. In this case, the sell price includes the GST/VAT tax but excludes service fees. The service fees will be displayed at the end of the transaction and added to the subtotal. In this case it is assumed that service fees are exclusive of any taxes. By default, the service fee will be calculated on the tax-inclusive sell price. However, if the country code for the tax system is set to Philippines, the service fee will be calculated on the sell price exclusive of tax.  

Sell Uses US Taxes

In the US Sales Tax model, each item can have up to three different tax rates associated with an item. The taxes will be calculated at the end of the sale and added to the subtotal.

Note: Any report that includes item-level tax information will not work for US-style taxes as the tax is calculated for the entire transaction.

Taiwan: Sell Includes Tax/Excludes Fees, Fee is Taxable

This tax system is very similar to the existing includes taxes; excludes fees tax system. To support this tax system, an option has been added to the Advanced tab in Locations - ‘Include Service Charge in Tax-Free Sales Total in Reports’. If checked, the Item Sales by Dept report will include the service charge in the sales ex-tax total.

Special Taxes

WET

The Australian model of GST has an additional tax called WET (Wine Equalisation Tax) which is charged on wine products. This is added to the purchase cost BEFORE adding on GST. If you need to use this feature you should check on the Do you need to use Wine Equalisation Tax? on the System tab of System Settings. Set up a tax code called WET. Edit the Tax System and select the WET tax code in the WET combo-box.

Find each item that is charged WET. Edit the tax system for the item and check select the WET tax code in the WET combo-box. This must be set manually as not all products have WET.

Where 'Sell Uses USTaxes' tax system type is used, the WET tax field is used for flat rate taxes to be applied to an item. See Taxes for more information.

Cess

The Singapore taxation system allows for a tax called CESS. This is charged as 1% of sales before GST. It is only charged by venues that sell alcohol after 10.00pm. If you need to use this, set up a tax code called CESS. Edit the Tax System and select the CESS tax code in the CESS combo-box.

Find each item that is charged CESS. Edit the tax system for the item and check on the Charged CESS checkbox.

Service Fee

In Singapore many food and beverage venues charge a service fee. Although not strictly a tax, as it is not payable to the government, it works like one. It is generally charged as 10% of sales before GST.

If you need to use this, set up a tax code called SVFEE. Edit the Tax System and select the SVFEE tax code in the Service Fee combo-box.

Find each item that is charged Service Fee. Edit the tax system for the item and check on the Charged Service checkbox.

Group Service Fee

The Group Service Fee functionality allows the application of a service charge when an order has x or more covers. Similar to above, Items are configured to have a service fee applied when sold. When the items are sold, with the group service fee configured in Tax Systems/Tax Rates tab and the number of covers for the transaction is equal to or exceeds the configured value, the group service fee will be applied to the transaction. If the group service fee cannot be applied, the standard service fee will be applied to the transaction instead.

Electronic Host Updates

If you are using electronic host files from your suppliers, it is most likely that they will contain tax codes. Unfortunately, these tax codes are unlikely to match the tax codes used within your own system, for example you might indicate 12% tax with a code 'A' while the supplier uses code '12'. The system has a cross-reference table which allows you to specify the list of a supplier’s tax codes and your own matching codes. These are entered against each supplier from which the host update files are received in the Supplier function.

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