Configure your taxes precisely by location and category using the highly flexible V2 Tax Engine
Setting up your Tax Configurations
1. Go to settings > Tax Configuration in your Greenline dashboard. 
2. Click Add tax at the top right side of the page.
3. Fill out all fields in the Create New Tax Configuration page.
4. Save at the top right side of the page. 
New Tax Configuration Fields
When setting up a tax configuration, you'll see several new fields. Let's go over what they all mean.
- Name: for internal use and must be unique - this will appear on reports.
- Display Name: will appear on customer receipts and does not need to be unique.
- Rate Type: how the tax amount is calculated, currently locked to percentage (%)
- Rate Amount: or the tax amount that is calculated and charged for a specific configuration.
- Categories: set taxes to all categories or a subset of categories or subcategories. Any products that exist within the selected category or subcategory will have taxes applied. If a parent category is selected, all subcategories within that parent category will have this tax configuration applied.
- Locations: specify the location(s) where the tax configuration applies. If no location is selected, the tax configuration will apply to all locations.
- Tax-Exempt Customer Types: specify the "Identity Type" set to customer profiles, either Treaty Member Card or Veteran ID, that enables automatic tax exemption for eligible customers. Only customers with these selections will be exempted from all tax.
- Tax Type: specifies the type of tax, such as City, County, State, Federal, Excise, or Municipal. This may be left blank.
- Compounding Taxes: defines if this tax is calculated on top of the total including another tax. Tax will be calculated on the product subtotal plus the amount of the selected tax(es).
- Taxable Fees: Retailers can now specify whether taxes apply to specific system fees like Shipping, Surcharge, Tips, and Bottle Deposits.
- Active: enables or disables the given tax configuration. If disabled, taxes will default to V1 tax settings (Settings > Taxes).
Tax Exempt Customer Profiles must have the "Tax Exempt" checkbox checked to ensure the correct taxes and/or exemptions are applied, depending on location specific configurations.
Flat, Stackable, Compounding Taxes Explained
Flat Tax
A flat tax is a single, fixed percentage applied to the total price. It's straightforward because the tax rate never changes.
Example: A provincial sales tax (PST) of 7% is a flat tax. If a customer buys an item for $100, they pay a $7 tax. If they buy an item for $500, they pay a $35 tax. The rate is always 7%.
Stackable Tax
Stackable taxes are multiple taxes added to a single item. Each tax is calculated independently on the original price, then all the tax amounts are added together.
Example: An item with a price of $100, is taxed at 5% tax and then a separate 10% tax.
Tax 1: 5% of $100 = $5.00
Tax 2: 10% of $100 = $10.00
Total tax: $5.00 + $10.00 = $15.00
Final cost: $100 + $15.00 = $115.00
Compounding Tax
Compounding tax is a 'tax on a tax'. One tax is applied and then another tax is calculated against the new, higher total.
Example: An item costs $100. There is a 5% tax and a separate 10% tax that compounds on the first tax.
First, calculate the 5% tax: 5% of $100 = $5.00.
New price after first tax: $100 + $5.00 = $105.00.
Next, calculate the 10% compounding tax on the new total: 10% of $105.00 = $10.50.
Total tax: $5.00 + $10.50 = $15.50
Final cost: $105.00 + $10.50 = $115.50