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.
   6 - Add On, Excludes Start Amount	Select this option to calculate the add-on tax using the tax percentage rate where the tax applies only to the amount above the defined Start Amount. When adding items using this tax: Quantities greater than one must be added as separate items. Items can be moved to other seats and split off the check but cannot be shared among multiple seats or checks.

4. In the Start column, enter the taxable sales amount that must be reached in a transaction before this tax rate is applied.
5. If the tax type is a percentage, enter the percentage for the tax rate in the % column.

   If the tax type is a surcharge, do not enter it as a percentage here.

6. If the tax type is a breakpoint, click the Configure button in the Breakpoints column, and then select the point values for the tax rate.
7. If the tax rate appears on reports, enter the Report Group number. Enter 0 if the tax rate does not appear in reports.
8. To print the tax label on guest checks and customer receipts, enter the Tax Label for the tax rate.

   Tax Labels must also be enabled in the Tax Parameters module. See Configuring Tax Labels for more information.

9. If the tax rate is time-bound, select the Effectivity Group, Effectivity Status, Date Start, and Date End.

   See Effectivity Groups for more information.

10. Click Save.
11. Select the Enterprise, property, or zone, click Setup, and then click Tax Classes.
12. Insert a tax class record with the appropriate name (for example, Soda Tax, Liquor Tax, or Surcharge).
13. 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.

    Note:

    The system only supports posting items with eight active tax rates. Order types, tender media, and serving periods provide the ability to turn tax rates on and off when they are used.
14. Click Save.