Documentation

Tax Groups

Tax Groups let you define how sales tax or VAT should be calculated across your products, delivery fees, and service charges. This is essential for regional tax compliance and accurate financial reporting.

You can create multiple tax groups to reflect your country’s rules—whether you operate with VAT-inclusive pricing (e.g. UK, EU) or exclusive sales tax (e.g. US, Canada).

Creating a Tax Group

  1. Go to Settings > Tax Groups
  2. Click Create

Complete the following fields:

  • Name – A clear label (e.g. “20% VAT”, “NY Sales Tax”, “Zero-rated”)
  • Tax Code – Optional field for accountancy/export (e.g. “VAT20”, “US-CA-ST”)
  • Percentage – Enter the tax rate (e.g. 0, 5, 10, 20)
  • Tax Included in Price –
    • Toggle on for VAT-inclusive pricing (UK, EU, NZ, AUS)
    • Toggle off for tax-exclusive pricing (US, Canada)
  • Description – Optional notes for internal use

Inclusive vs Exclusive Tax Explained

Inclusive Tax (e.g. UK, EU, AUS, NZ)

  • You list prices as final sale prices, tax included (e.g. £10 includes 20% VAT)
  • Customers see the same total at every step
  • The system calculates and displays gross and net amounts in reporting
  • Products marked with this tax group show final pricing on the menu
  • Ideal for most consumer-facing tax setups

Example:

  • Product Price: £12
  • VAT (20%): £2
  • Net: £10
  • Customer pays: £12

Exclusive Tax (e.g. US, CA)

  • You list prices before tax (e.g. $10 is the base price, tax added later)
  • Tax is shown as a line item at checkout and on receipts
  • Customers see subtotal, tax, and total clearly separated
  • Ideal for businesses in regions where tax is added at point of sale

Example:

  • Product Price: $10
  • Sales Tax (10%): $1
  • Total: $11

Where You Can Use Tax Groups

Tax Groups can be applied to:

  • Products – Select a tax group from the dropdown when creating or editing a product
  • Delivery Fees – For example, 20% VAT or 0% for exempt charges
  • Service Charges – Add tax to platform or packaging fees if required by law

Final Notes

  • Always check local tax laws to ensure you're applying the correct rate and method
  • Tax Group settings do not override product pricing, they simply define how it’s calculated and displayed
  • Customers always see clear pricing—whether tax is included or added at checkout
  • Tax amounts are shown on invoices and order summaries for transparency