How to Override Item Tax With Service Area Based Tax?

Quantic POS allows you to levy the service area-based tax, item-specific tax, or both on an item. Users can enable or disable this feature using the “Override item tax with service area tax” configuration on the backend portal.

  1. Login to your location’s backend portal.
  2. Click Configurations.
  3. Search – “Override item tax with service area tax” as shown in the image and enable the configuration by turning on the toggle switch next to it.

There are three different scenarios under which the tax calculations behave differently. Users must know each one of them so as to get a fair idea of how the order total gets influenced in different conditions.

Condition 1: When a configuration (Override Item Tax With Service Area Tax) is disabled.

If a tax is applied to the service area and an item, then both the taxes will be taken into calculation. In this example case, the user has applied 3.5% tax on item level and 5% tax in the Main Dining service area. Since, the configuration – Override Item Tax With Service Area Tax is disabled, the cummulative tax of 8.5% (item tax + service area tax) will be levied to the item in Main Dining service area.

Applying the item level tax:

  • Go to the Catalog.
  • Select the item from the list.
  • Go to the Detail tab and select the tax from the Tax Class drop-down.
  • Click Save.

Applying the service area based tax:

  • Go to the Configurations from the left navigation.
  • Select the Service Area module.
  • Click the Edit button, tap  next to the servicre area to which you want to add the tax class.
  • Select tax from the Tax Class ID List drop-down.

Condition 2: When a configuration (Override Item Tax With Service Area Tax) is enabled.

If there is already a tax on an item (greater than zero) then only the item’s tax will be taken into calculation. In this example case, the user has applied 3.5% tax on item level and 5% tax in the Main Dining service area. Since, the configuration – Override Item Tax With Service Area Tax is enabled, the item-level tax of 3.5% will be levied to the item in Main Dining service area. 

Applying the item level tax:

  • Go to the Catalog.
  • Select the item from the list.
  • Go to the Detail tab and select the tax from the Tax Class drop-down.
  • Click Save.

Condition 3: When a configuration (Override Item Tax With Service Area Tax) is enabled.

If there is zero tax on the item then only the service area-based tax will be taken into calculation.  In this example case, the user has applied 0% tax on item level and 5% tax in the Main Dining service area. Since, the configuration – Override Item Tax With Service Area Tax is enabled, the service area-based tax of 5% will override the item-level tax and be levied to the item in Main Dining service area. 

Applying the service area based tax:

  • Go to the Configurations from the left navigation.
  • Select the Service Area module.
  • Click the Edit button, tap  next to the servicre area to which you want to add the tax class.
  • Select tax from the Tax Class ID List drop-down.