Tax Rates and Tax Groups in Appetize

Description: You'll learn to configure and manage taxes in Connect, including creating tax rates and groups and assigning them to vendor roles and items, distinguishing between inclusive and exclusive taxes, and utilizing various tax-related settings in the system interface.

Overview

There are many areas of Connect that require configuration to successfully apply and report taxes.

Tax Rate: Creating/maintaining specific tax rates that can be used within Tax Groups or as an Item Level Tax.
Tax Groups: Add one or many Tax Rates that can then be applied to a group of stores/venues via Vendor Roles or Items
Vendor Role: Assign a Tax Group to each Vendor Role. This will then apply the tax to each Vendor that has that Vendor Role assigned.
Item Tax Settings: Each Item can be set as Taxable or Non-Taxable and have specific tax rates or tax groups assigned. The item tax will override what is programmed within the vendor role tax.

Inclusive vs Exclusive Tax

There are two different kinds of tax applied to orders.

Inclusive - Tax is part of the price of the item.
Exclusive - Tax is NOT part of the price of the item and is calculated upon checkout.

Create Tax Rates

Log in to Connect and select Options on the left menu.
Select Tax Rates from the menu.
Select the Create button.
Fill in the details for the Tax Rate.
- Name: Enter the name for this particular Tax Rate
- Tax Rate: Enter the Tax Rate (as a Percentage) within this field (Ex: 8.5, 7.654)
- Tax Type: Determine if the tax will be Inclusive or Exclusive.
  - Inclusive: This will include the tax within the price of an item, so each item should have tax built into the cost.
    - Example: Item price is $2.00; tax rate is 10%. The subtotal of the order would be $2.00, with tax showing as inclusive $0.18 for reporting purposes. Total Order = $2.00
  - Exclusive: This takes the calculated tax and adds to the item/order cost.
    - Example: Item price is $2.00; tax rate is 10%. The subtotal of the order would be $2.00, with tax added as exclusive $0.20 for reporting purposes. Total Order = $2.20
- Code: Optional, to be used for reporting purposes.
- Value Type
  - Percentage: Configures Tax Rate to act as a Percentage.
  - Flat: Configures Tax Rate to act as a Flat Dollar Amount.
  - Table: Create a new tax table by filling in the rows that populate once selected.
    - Start: The lower range value of a sales amount. It can only be a positive dollar value that does not already exist within a range on the table.
    - End: The higher range value of a sales amount. It can only be a positive dollar value that does not already exist within a range on the table.
    - Tax Owed: The tax that is owed for the start and end range. It can only be a positive dollar value that does not already exist within a range on the table.
    - Repeated?: Designates whether a row is part of a repeating cycle.
    - Add as many rows as needed for the Tax Table.
- Status: Active or Inactive
- Threshold Logic: Select Full to add a Price Threshold.
- Price Threshold: The minimum subtotal of an order for tax to apply.
  - Only available if Threshold Logic is set to Full.
- Geo Tax: GeoTax is an inclusive tax type that allows users to apply a tax rate to a defined GeoFence.
  - This option is only available for Tax Per Item venues with iOS GPS enabled devices.
Select the Save button to finalize settings and create the Tax Rate.

Edit Tax Rate

Once the tax rate has been created, select the rate to edit and review the configuration.

The assigned Tax Groups can be reviewed on the Assigned Groups tab.
If the rate is assigned to individual items, those can be reviewed on the Assigned Items tab.
Any changes to the tax rate will be visible on the History tab.

Create Tax Groups

To access Tax Groups, navigate to the Items section of the Enterprise Connect Dashboard.

Log in to Connect and select Options on the left menu.
Select Tax Groups from the menu.
Select the Create button to add a new Tax Group.
- Name: Enter the name of the Tax Group
- Code: Not required, but enter if needed for reporting purposes
- Status: Active or Inactive

Configure Tax Groups

Once a Tax Group is created, Tax Rates can be added, and it can be assigned to Venues and Hierarchies.

Select the Tax Group to edit.
Select the Assigned Tax Rates tab.
Select Add Tax Rate and select Assign for each tax that will be utilized in the Group.
Select the Assigned Venues tab.
Select Add Venue and select Assign for each venue that will be utilizing the Tax Rate.
Select the History tab to view any changes made to the Rate.

Vendor Role Settings

The Vendor Role has several tax settings that can be configured. A Tax Group can be assigned to apply and record taxes for the transactions processed at the associated Vendors.

Log in to Connect and select Options on the left menu.
Select Vendor Roles from the menu.
Search for and select the Vendor Role to edit.
Select the Taxes tab.
Select the pencil icon next to a setting to edit.
- Apply Tax To Subtotal: Enable to apply the tax to the customer subtotal.
- Apply Tax To Fee: Enable to apply tax to any fees added to this Vendor.
- Apply Tax To Convenience Fee: Enable to apply tax to the convenience fee if required.
- External Default Tax Value: Set to Inclusive or Exclusive.
Select the Tax Group tab.
Select Assign Tax Group.
Select Assign to add the Tax Group.

Item Level Tax Settings

Tax Rates or Tax Groups can be assigned to Items that are taxed differently from the rest of the items at the Vendor. Items can also be Taxable or Non-Taxable.

Note: Taxes configured on the item will override the Vendor Role level taxes.

Log in to Connect and select Items on the left menu.
Select Items from the menu.
Search for and select the item to edit.
Select the Taxes tab.
- Taxable
  - Yes: If the item will be taxed
  - No: If the item is exempt from taxes.
  - This setting controls the taxable status of the Item even if there is not a specific Item Level tax assigned to it.
Select Assign Tax Rate and select Assign for each tax that will be applied to the item.
Select Assign Tax Group and select Assign for the group of taxes that will be applied to the item.

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