A Tax is an involuntary fee levied on individuals or corporations and enforced by a government entity. Tax values are percentage-based and apply to all items in a sale associated with the tax.
When a new item is created, no Tax applies to the item unless it is associated with a specific Tax.
In the Krossroads POS App, a Tax is computed as:
- Add Tax to Item Price — The tax is added to the price at time of sale. For example, if a 10% tax is applied to a USD 100 item, it means the 10% Tax is not part of the price, so when the Item is added to cart, its cost would be USD 110.
- Included in Item Price — The Tax is assumed to already be included in item prices they apply to. For example, if an item cost is USD 100 and there is a 10% Tax which is included in the price, it means that that 10% tax is already part of the USD 100 price so when the item is added to the cart, its cost would be USD 100. The actual price is assumed to be USD 90.00