Configure your taxes before you start setting up the prices on your account.
Before you set up your taxes
- For stores in California: If you engage in "arm's length" transactions with outside vendors, see FAQ: California "arm's length" Excise Tax and Markup.
- If your state or region requires compounding taxes, learn how to Configure compounding taxes before you create taxes.
Add a new tax
- Go to Settings > Taxes.
- Select Add Tax.
- Give the tax a descriptive Name.
- If applicable, select whether this is a Compound tax or a Standard tax. (This option is only shown in states that require compound taxes.)
- Specify which Product Types and Customer Groups this tax applies to by checking the appropriate boxes in the Product Types & Customer Groups table.
- Scroll down to the Rate Schedule and enter your tax Rate as a percentage. For instance, if the sales tax is 7.5%, enter 7.5, not 0.075.
- Select whether this tax should Inclusive:
- Yes: tax is built into the Display Price and the prices shown on Menu Feeds.
- No: Display Price and Menu Feed prices will not include this tax, and the tax is only added at the Register. This is also called Exclusive tax.
- In some states, if you select No and make your tax Exclusive, Greenbits asks you whether to Apply Exclusive Tax Before Discounts. Select Yes to apply this tax before any discounts are applied. Select No to apply this tax after all discounts are applied.
- Set the Start Date the tax will go into effect.
- Leave the End Date listed as Never. You will add this date only if the tax rate changes or if this tax is eliminated.
- Scroll back up to the top of the page and select Save.
Preview your taxes
Select Show Preview to see an example of how your taxes would be calculated on a hypothetical Product with a $10.00 Base Price. Use this to confirm whether your taxes are correctly configured before you start making sales.
If your taxes change, learn how to change or end a tax.