Create and Manage Tax Codes in Tagrain

Create and Manage Tax Codes in Tagrain

Introduction

Tax Settings allows you to configure the tax rate for all the transactions in a store. The tax rate may vary from place to place as per the law of land in which the store is physically located. Based on your geographical location, Tagrain automatically creates the default Tax Codes for you during the initial sign-up process. You can create additional Tax Codes, if required. You can also edit the existing Tax Codes. All this is done from the Tax Code Master screen.

Purpose

Tax settings are for configuring the Tax code and Tax rate transactions payable by store.  

Steps to configure Tax Settings

Go to Home > Setup > Tax Settings. On clicking the Tax Settings, the Tax rate configured for all the stores gets populated. You can choose to Create a Tax code. To Create a Tax code, perform the following steps: 
-- Specify the tax code.
-- Specify the tax name.
-- Switch on the button if the tax code has multiple tax components.
-- Specify the tax rate. 
-- Switch the button on to make this tax code a default tax code. 
Click on the Save button to save the settings.



Tax Code Master

The various fields in the Header Section are explained below: 


Code Id
This is the tax code id for the tax,  which will be payable on the transactions made in the store.  

Name
This is the name of the tax that is payable by the store along with the details. 

Has Multiple Tax Component
Switch this on if the tax rate has multiple tax components. For example, a sales tax might combine a state level and local level tax, in such cases it is recommended to switch this button on. To know how to use this option please see the third example below given in explanation to Rate Calculation. 

Rate 
Specify the tax rate payable as per the law of land in which the store is physically located. The following examples will further explain the tax determination rate:  
Singapore has a very simple Tax Setup where total tax application on sale of goods is 7%.  In this case the tax rate will be 7% and the “Has Multiple Tax Component” option will be kept turned Off. 
London, UK has a VAT taxation system. The total tax applicable on sale of goods is 20%. In this case the tax rate will be 20% and the “Has Multiple Tax Component” option will be kept turned Off. 
New York City has the consolidated tax applicable on sale of goods as 8.875%. This comprises 2 components (i) New York State Tax (4%) and (ii) New York City Tax (4.875%). In this case the tax rate will be 8.875% and the “Has Multiple Tax Component” option will be turned On.

Follow the following steps to create a consolidated tax rate for New York. 
Step 1. Create a Tax code NYST (New York State Tax) with 4% without  switching on the “Has Multiple Tax Component”.

Step 2. Create a Tax code NYCT(New York City Tax) with 4.785% without switching on the “Has Multiple Tax Component”.

Step3. Create NYT(New York Tax) and switch on the “Has Multiple Tax Component”. You will be  displayed a list of the tax code created in the system. Select the NYST and NYCT. This will add the tax selected and Rate will display the added Tax as 8.875%.Click on Save button to save the Tax Code.

Is Default 
Switch this on, if you want this tax code to be a selected tax rate for transactions by default. 
The Tax Resolution Hierarchy is from Specific to Generic. This means that when a product is scanned on the POS, the application will check for any tax code mentioned specifically for the product. If there are no specific instructions at the product level like Tax Exempt, etc. the application will look for the Tax at the customer level. There could be cases where a customer or a group of customers are Tax Exempt (veterans, senior citizens, etc.). If the application does not find any specific tax instructions for the customer, the tax code specified at the store will be applied to the items in the transaction. 

Export the Tax Code

Tax code can be exported using the Export button. Click on the Export button and browse to a location where you want to save the Tax code. Click on the Save button to save the file.

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