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Multiple Tax by Order Type

 
Configuring multiple tax by order types is essential for ensuring the system can accurately calculate taxes based on different business scenarios. You need to define the tax categories themselves and clarify the rules that govern their application.
 

Multiple Tax by Order Type Configuration

The product tax is linked to a specific product and is calculated based on the final designated dining option for each item.

Navigate to Back Office > Payment & Fee > Fee Settings > Tax.

Setup Steps:
  • Tax Name: Assign an easily identifiable name to your tax category, such as "Dine-in Tax" or "Take out Tax".
  • Tax Rate: Enter the accurate tax rate percentage, for example, 10%or 20%.
  • Assign Tax to Order Types: This is core to precise tax calculation. You need to define for which order types (e.g., Dine-in, Takeaway, Delivery) this tax is effective.

Steps: Set "Assign Tax to Order Types" to "Enabled". (If this setting is not enabled, the tax may be applied to all order types by default).

  • Click "Confirm" after configuration.

E.g., Create a tax named "Take out Product Tax" and associate it only with the "Take out" order type.

  • Bind Tax to Products

E.g., In the tax settings, both the "Dine-in Product Tax" (rate 5%) and the "Take out Product Tax" (rate 10%) link to all products.

After configuration, let's take an order to test it.

Two identical products, product A: one for dine-in and one for takeout.

This tax type is configured at the individual product level. At checkout, the system applies the correct rate based on the "preparation method" (Dine-in/Take out/Delivery/Self Pickup) specified for each item in the order. 

 

Tax Calculation Logic

When calculating the total tax, the system follows a core sequence:
1. First, it calculates the product tax for each item and sums them up.
2. Then, it calculates the service tax for the order.
 
The following example illustrates the calculation for a mixed order (dine-in order and a take-out product). Assuming the unit price of menu item A is 100,  the product calculated here on a "Tax Excluded In The Product Price" for clarity:
 
Step Calculation Item Method Amount (USD) Notes
1. Subtotal​ Item A (Dine-in) + Item A (Takeaway) 100 + 100 200 Sum of items' base prices.
2. Calculate Product Tax​ Dine-in Product Tax​ (for dine-in Item A) 100 × 5% 5 Tax based on the item's "preparation method".
  Takeaway Product Tax​ (for takeaway Item A) 100 × 10% 10 Tax based on the item's "preparation method".
3. Calculate Service Tax​ Dine-in Service Fee​ (on the defined tax base) Subtotal × 10% 200 x 10% = 20 Service tax applied to the entire order based on the order channel.
4. Final Amount​ Total Amount Payable​ Subtotal + Total Product Tax + Service Tax 200 + 15 + 20 = 235 Final amount customer pays.
 
 
 
Calculation Rule:
  • Dining Option for Mixed Orders: Determined by the order channel. In this example, although it contains a takeaway item, the bill is settled through the "Dine-in" channel, so the entire order is subject to the dine-in service fee.
  • Tax Calculation Order: The system first calculates the product tax for each item and sums them. It then uses a defined base amount(commonly the Item Subtotal, tax exclusive) to calculate the whole order's service tax. 

The logic is similar for tax-inclusive pricing configurations.

 

Configuration Tips

  • Clearly Define Tax Types: In the Back Office settings and Tax-name settings, clearly distinguish between "Service Tax" (full order tax) and "Product Tax" (individual item tax) to avoid confusion.
  • Testing and Validation: After configuration is complete, be sure to create test orders that include mixed items to verify that the tax calculation on receipts and backend reports is accurate.
  • Compliance Considerations: Ensure that the tax categories and rates you set comply with local regulations, particularly concerning the collection and display of service fees.
We hope this detailed guide helps you accurately configure and validate complex multi-tax scenarios. If there are any other details you would like to discuss, please contact our support team.
Last modified: 2025-12-18