Tax Rates control the VAT amount displayed on receipts when Customers are placing their Orders and in the Management Center reports. Multiple Tax Rates can be created and assigned to different Items (for example if your Country has different rates for Food and Drink) and separate percentages can be set for Dine-in and Takeout (including Delivery) Orders. Modifier always pulls the Tax Rate from its parent Item.
MENU supports Inclusive (VAT already included in the price) and Exclusive (VAT calculated on top of the price) Calculation Methods to adhere to Tax Policies in different jurisdictions.
For Store Groups, the Tax Rates are created for the Store Group to be assigned to Items, but the percentages for the Tax Rates are set per Store, since the percentages might vary depending on Store's location and Country's Tax Policy.
If you have a POS integration, the POS will calculate the VAT for its own reporting. In this case, you should use your POS reports as the source of truth for your Tax reporting.
- Select the Store from the Store List
- Click on Tax Rates in the sidebar to open the Tax Rates page
- Click on Add
- IN STORE: Tax rate percentage for Dine-in Orders
- TAKEOUT: Tax rate percentage for Takeout & Delivery Orders
- Enter tax percentages
- Click Add Tax Rate to save your changes
To add Tax Rate to Single Store:
- Select a Single Store for which you want to add a Tax Rate
- Select Tax Rates in the sidebar
- Tax Rates form appears
Tax ID Number: ID Number of a Tax Rate
Tax Calculation: Calculation Method can be Inclusive (VAT already included in the price) and Exclusive (VAT calculated on top of the price)
In Tax Rates section you have preset Tax Rates. On Store level you can edit the rate of taxes for Dine-in and Takeout & Delivery Orders.
Use for delivery fee: Tax Rate used to tax the delivery fee and minimum surcharge (fee for Orders that don't meet minimal order amount). Only one Tax Rate can be enabled to be used for the delivery fee.
TAX RATES NAME: Name of Tax Rate
IN STORE: Tax rate percentage for Dine-in Orders
TAKEOUT: Tax rate percentage for Takeout & Delivery Orders
- Enter all the data previously defined
- Optionally check Use for delivery fee box
- Click Save to save your change
Taxes alignment with the POS
Please note that Taxes should be aligned with POS taxes on items and that mismatches of these can send the wrong taxes to the Aggregators (Link), leading to failed orders because of the mismatch.
Taxes and decimals
Taxes in MC support up to 4 decimal places. This means that if the Tax in your Brand is very low, like 0.1%, you can still set it up. On the other hand, if your Taxes have to be very detailed, you may set them up like so: