Tax Rates are managed from the ‘Setup’ area of the Cloud POS Back Office menu.

This article explains how to create, edit and delete Tax Rates. 

If you have variable Tax Rates by Department, Category and/or item price, and you are a Sales Tax user, you may also need to refer to the following article: How do I add and manage Variable Tax Rates? 

Creating a new Tax Rate

1)  In the Cloud POS Back Office menu, navigate to Setup and then Tax Rates:

The Tax Rates page is divided into two sections.

• The first section displays the Tax Rates that you assign to items in your database.  
• The second section displays the Tax Components, which are used to build the Tax Rates. Tax Components allow you to create Tax Rates comprised of multiple tax elements (for example State, County and City tax in the United States).

When creating your new Tax Rate, you will need to consider which Tax Components it will include. 

2) If you need to create a new Tax Component, click New in the top-left of the Tax Components table:

3) You now need to populate three fields:

• Enter a Description for the Tax Component, to allow you to identify it later. 
• Create a Code. This could be an abbreviation of the Description.
• Enter the Component %. This is the percentage that this component will contribute to the final Tax Rate.

4) Click Update to proceed.

You may need to repeat steps 2-4 to create additional Tax Components for your new Tax Rate. Once you have all the Tax Components you need, you are ready to create the Tax Rate itself.

5) Beneath the Tax Rates table, you will see the button to Add New Tax Rate:

6) You now need to populate two fields:

• Enter a Tax Rate Description. This will be the name for the Tax Rate that you will see on item records and in Cloud Reports.
• Create a Code. This could be an abbreviation of the Description.

7) Click Save New Tax Rate to proceed.

Once you have saved your new Tax Rate, a table will appear for you to add your Tax Components. 

8) Click New and a drop-down will appear. You can use this drop-down menu to select your Tax Components. Click Update to add each Tax Component to the table.

9) Once you have added all the necessary Tax Components, click Update Tax Rate.

10) You will see a success message to confirm that your Tax Rate has been saved. Click Return to Tax Setup to return to the previous screen.

Your new Tax Rate will now be displayed in the table at the top of the screen. The ‘Tax Rate %’ will be the combined percentages from all your chosen Tax Components. 

Your new Tax Rate can now be assigned to items. You can do this on individual item records, or by using the Modify Item Detail Wizard.

Editing or Deleting a Tax Rate

1) In the Cloud POS Back Office menu, navigate to Setup and then Tax Rates:

The Tax Rates page is divided into two sections.

• The first section displays the Tax Rates that you assign to items in your database.  
• The second section displays the Tax Components, which are used to build the Tax Rates. Tax Components allow you to create Tax Rates comprised of multiple tax elements (for example State, County and City tax in the United States).

If you are editing a Tax Rate, it is likely that you will need to begin by editing the Tax Components within it.

2) In the Tax Components table, click Edit beside the Tax Component you wish to amend:

3) You can now make your changes, whether to the Description, Code or Component %. For example, here we have changed the Component % for New York City from 4.5% to 4.25%. Click Update to save.

If you make changes to the percentage of a Tax Component, any Tax Rates using this component will automatically recalculate. Refresh the page, and you will see this reflected in the Tax Rates table at the top of the page.

You may also wish to adjust the Description of the main Tax Rate to reflect your changes.

If you need to delete a Tax Component, you must first remove it from any Tax Rates in which it is included. You are also unable to delete a Tax Component (or Tax Rate) that is set against an item or supplier or that has been used within a batch.

Frequently Asked Questions