Setting Up Flat Rate Taxes
When setting up a new venue, it's important to create the correct taxes for your region. Depending on your state and local laws, there are different ways to set up your taxes. POSaBIT makes it easy for you to customize your taxes for each venue.
In some instances, a dollar amount - or Flat Tax - is needed instead of a percentage.
Some examples include a Bag Tax, for when a customer is charged for requiring a bag, or a Delivery Tax, for when there is a delivery fee that goes back to the local government.
If a customer buys more than one bag, the user on the POS machine can add as many bags as needed. Adding bags is just like adding an item for purchase and the tax that is included in the price will show up as a Bag Tax.
Note: By creating a new tax, it defaults to adding the new tax to all the other product types. You must go back and uncheck the flat tax that was just created for all the other product types.
Let's walk through the steps of setting up a Flat Rate Tax:
- Login to the POSaBIT POS Portal.
- Go to "Settings" then find "Taxes"
- Click on "New Tax"
- This is where you will input the fields for a single tax:
- Name - This is the name of the tax. Following the example above, you would input something like "Bag Tax", "Delivery Tax" etc.
- Tax Rate - This defaults to "0.00", which should stay at zero if it is not a percentage of the purchase price.
Note: For a Flat Tax, you must input "0" in "Tax Rate" or it will give you an error. - Amount $ - Type in the dollar amount specific for this tax. Example: $ "0.25", "1.50"
- Include in Price - For a flat tax, do not check this box.
- Is Active - Check the box to activate the tax.
Note: you cannot delete the tax after setting it up, you can only make it in-active. - Cannabis tax - Check this box if it is a cannabis-specific flat tax. If not, leave it unchecked.
- Name - This is the name of the tax. Following the example above, you would input something like "Bag Tax", "Delivery Tax" etc.
- Once you have verified all information for the "New Tax" was entered correctly, press the button labeled "Save" to complete the tax creation.
Now that you've created the Flat Tax, you can begin to edit the product types to reflect these taxes.
In this example, we will be using a paper or plastic bag item for clarity.
You can follow these steps to set the tax for a product:
- Head to the Product Types page under the Inventory tab.
- Create a new product type to reflect this tax (i.e. "Bag"). Learn how to set up a Product Type here.
- Edit the product type to include the new tax.
- Hit "Save" and your Product Type is ready to go, with the Flat Tax applied to it.
- Under the Product Details tab, create a "New Product" for your new item. If you are not charging a base price for the product (only the tax), set the price to $0.00 and the customer will only be charged the flat rate tax under "Taxes", not "Subtotal".
- Now that you have your Product Detail created, you can add the new item to your cart at any time via the Inventory Search, or by assigning a SKU to the product and scanning the barcode any time it is added to the cart. In the instance above, the Bag product will add a bag to the cart with a $0.00 price towards the Subtotal, and a $0.10 tax toward the Taxes.
If you have any questions, please reach out to your Customer Success Manager about setting up a Flat Rate Tax!
