Configuring Tax Rates and Classes

  1. Select the Enterprise, property, or zone, click Setup, and then click Tax Rates.
  2. Locate the appropriate tax rate. There are 64 active tax rates.
  3. Select the tax rate type from the Type drop-down list. The following table describes the tax types:

    Table 13-3 Tax Types

    Type Description

    0 - Disabled Tax Rate

    Select this option if the tax rate is not used.

    1 - Add On, Breakpoint

    Select this option to calculate the add-on tax using the Breakpoint method.

    2 - Add On, Percentage

    Select this option to calculate the add-on tax using the tax percentage rate.

    3 - Included, Percentage

    Select this option to calculate the inclusive tax using the tax percentage rate to determine what portion of the sales price is the tax. The inclusive tax applies differently depending on the global VAT (European or United States).

    Because the tax is included in the price, the tax is backed out of gross sales on reports.

    4 - Surcharge

    Select this option to calculate surcharges for items.
  4. Click Save.
  5. Select the Enterprise, property, or zone, click Setup, and then click Tax Classes.
  6. Insert a tax class record with the appropriate name (for example, Soda Tax, Liquor Tax, or Surcharge).
  7. From the Taxes Enabled field, select the applicable tax rates, and then click OK. The tax rates you select are active for the tax class.
  8. Click Save.

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