This article walks you through setting taxes by configuration instead of by product.
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: The Name is for internal use and must be unique - this will appear on reports.
- Display Name: The Display Name is what will appear on customer receipts, and it doesn't have to be unique.
- Rate Type: The Rate Type is the way the rate amount is applied to the subtotal of the taxable amount.
- Rate Amount: The Rate Amount is the set amount calculated and charged for a specific tax configuration. It is based on the rate type set above.
- Categories: The Categories allow you to choose all categories, or a subset of categories or subcategories, in which 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 to them during transactions.
- Locations: The Locations allow you to choose all locations, or a subset of locations, in which products that have transactions occur at that location will have the tax applied.
- Tax-Exempt Customer Types: This allows specific taxes to be automatically waived for customers with a Treaty Member Card or Veteran ID. The "Identity Type" field manages this on the customer profile.
- Tax Type: This specifies the type of tax, such as City, County, State, Federal, Excise, or Municipal.
- Compounding Taxes: This is a powerful feature that allows one tax to be calculated on top of another. For example, the way the BC vape tax is charged is that the GST is charged first, and the PST is charged on that total.
- Taxable Fees: Retailers can now specify whether taxes apply to specific system fees like Shipping, Surcharge, Tips, and Bottle Deposits.
- Active: The Active toggle controls whether this tax configuration will be applied or not. If a tax configuration is set to inactive, it will not show on transactions.
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, and then all the tax amounts are added together.
Example: Imagine an item with a price of $100. There's a 5% tax and 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
A compounding tax is a 'tax on a tax.' One tax is applied, and then another tax is applied to 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