Tax Classes

A tax class is a named set of tax rates, for example Standard rate with a 10% VAT rate. You assign a tax class to each menu item, and every order and invoice applies those rates automatically.

Who can do this:OwnerAdmin

Open Tax Classes under Configuration in the sidebar.

Plan Your Classes

Create one class for each different tax treatment on your menu. Common setups:

India: created at setup with GST 5% (CGST 2.5% and SGST 2.5%) as the default, plus GST 18% and GST 40%.
United Kingdom: created at setup with inclusive VAT 20% as the default, plus Zero rate at 0%.
United States: one class with your local sales tax rate.
Euro area: a Standard VAT class, plus a Zero rate class with a 0% rate for items that are not taxed.
United Arab Emirates: a VAT 5% class.
Japan: Standard 10% and Reduced 8% classes.

Check the rates with your accountant. The rates you enter are printed on every invoice.

Add a Tax Class

Select Add Tax Class.
Enter a Name guests and staff will understand, for example Standard rate.
Add a Description if you want, such as which items use it.
Choose the options:
- Included in price: tick it if your menu prices already include tax. Leave it unticked if tax is added on top at checkout. See the examples below.
- Default class: tick it to preselect this class on every new menu item. Only one class can be the default.
- Active: keep it ticked. Untick it to stop offering the class on new items.
Under Tax rates, enter a Name and Rate (%) for each rate. Select Add rate for more, for example a single VAT rate, or two rates if your country splits tax. All rates in a class add up to at most 100%.
Select Save.

Included in Price or Added on Top

The Included in price option changes how the total is worked out:

Not included (tax added on top): an item priced at 100 with a 10% rate bills 110. The guest sees 100 on the menu and pays 110.
Included: an item priced at 100 with a 10% rate bills 100. The invoice shows 90.91 as the price before tax and 9.09 as tax.

Restaurants that print tax-inclusive menu prices should tick Included in price.

Assign a Class to Menu Items

Open the Menu page, edit an item, keep Taxable ticked, and pick the class under Tax Class. Items with Taxable unticked carry no tax. See Menu Items.

Edit a Tax Class

Select the three-dot menu at the end of the row, then Edit. Change the name, options, or rates and select Save.

Changes apply to new orders only. Orders and invoices that were already created keep the rates they were created with, so your past bills stay correct.

Stop Using a Class

Select the three-dot menu, then Delete. A class can only be deleted while no menu item or charge uses it and no order or invoice was ever taxed with it. Otherwise, edit the class and untick Active instead. Inactive classes stay on the items and charges that already use them but cannot be picked for new ones. See Service Charges.

How Rounding Works

Every amount is rounded to the decimals of your currency: two for INR, USD, GBP, EUR, and AED, three for KWD, and none for JPY. Two settings on the Settings page control the rounding. They are preset for your country, so change them only if your accountant asks:

Rounding policy: Per line rounds the tax on each item and adds the lines up. Once per rate per invoice adds up the exact tax across the whole invoice and rounds once per rate. Under this policy an invoice total can differ from the sum of its orders by one smallest coin per rate. The invoice is the document that counts.
Rounding mode: Half up, Down, or Up.

Worked example with three items at 9.99 and an 8.25% rate: per line gives 0.82 tax on each item and 2.46 in total. Once per rate gives 2.47, because the exact tax of 2.4725 is rounded only once.

See Restaurant Settings to change these settings.