How do I set up sales tax or VAT?

RetailPOS Studio calculates tax on every sale from the tax rates you create. You can combine several rates into a tax group, and choose for each product whether its price includes tax or has tax added on top. This article is general guidance, not tax advice: confirm your rates with your accountant or tax authority.

Before you start

• The rate or rates you charge.
• Whether your shelf prices include tax (common in the UAE) or tax is added at checkout (common in the US).
• Your tax registration number, if you have one, to print on invoices.

Create a tax rate

1. Go to Settings → Tax rates → Add.
2. Enter a clear name, such as “VAT 5%” or “NY combined 8.875%”.
3. Enter the percentage.
4. Save.

Create a tax group (when several taxes apply)

Some US locations charge a state rate plus a county or city rate. You can enter the combined rate as one tax, or create each rate and combine them:

1. Go to Settings → Tax rates → Add tax group.
2. Name the group and select the rates it contains.
3. Save. The group behaves like one tax on products and sales.

Apply tax to products

1. In each product (or in your import file), choose the applicable tax.
2. Choose selling price tax type: inclusive if your price already contains tax, exclusive if tax is added at checkout.
3. For tax-exempt items, leave the tax empty.

By market

• USA: prices are usually exclusive; set the rate for your shop’s address. Shops in several states use one rate per location.
• UAE: prices shown to consumers include 5% VAT, so set products to inclusive. Print your TRN on invoices through the invoice layout.
• Pakistan: set the sales tax rate that applies to your goods. If you are a Tier-1 retailer, FBR rules on POS integration apply to you; ask about your situation on a demo.

Common problems

• Totals are off by a cent. Inclusive prices are split back into net and tax and rounded. Keep all products in a shop on the same tax type to avoid surprises.
• Tax doesn’t show on receipts. Enable tax display in the invoice layout.

Tips

• Name rates with the percentage in the name. It saves mistakes when picking from a list.