This feature is used to modify the tax rate applied to certain categories of products (for example, baked goods, candy, ice cream), based on the size or number of items purchased. This allows businesses to apply different taxes between menu items sold as single-serving prepared foods and items sold in bulk quantities (such as grocery items). For Add-on taxes, the total amount a customer pays will be affected by the tax override feature. For Inclusive Tax, the feature overrides a current tax class with a new one, but does not adjust the price of the menu item. The ratio of tax to revenue is changed; however, the price remains the same.
- Select the Enterprise, property, or zone, click Configuration, and then click Menu Item Groups.
- Insert a record and name it for the tax class override.
- Double-click the record to open it.
- Select 2 - Tax Override from the Group Type drop-down list in the Group Type Configuration section.
- Enter the Threshold Quantity.
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The base tax class setting is applied if the quantity of an ordered menu item is below the designated threshold value.
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You can use the Menu Item Definition Quantity field to contribute (or add to) to the Menu Item Group module’s Threshold Quantity value. Once the Threshold Quantity setting has been reached or exceeded, the previous base tax class setting is overridden by the tax class assigned to the Menu Item Group record. See Configuring Menu Item Definitions for more information.
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For Add-on taxes, the overall price of an item changes when the threshold is met or exceeded.
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For Inclusive taxes, only the tax rate changes when the threshold is met or exceeded.
- From the Tax Class Override drop-down list, select the desired tax class override.
You can use the lookup function for tax class override, which opens the Tax Classes module.
Tax Rates and Tax Classes contains more information.
- You must add all menu items to a specific Menu Item Group to which you want to apply a tax class override. In the Include section, click Add to assign menu items (or range of items) that you want to be able to apply to this particular tax class override.
- Select information for the fields described in the following table:
- If a menu item or menu item range was entered in error or is no longer needed, select the row, and then click Delete.
- Repeat Steps 7 through 9 as needed.
- Click Save.