Applying the customer's tax code

Adding a customer with a tax code 

If a customer you've added to a basket has a tax code associated with their profile, POS will automatically apply the customer's tax code to all the items in the basket (both current and added later).

In this example, the POS store has a default tax code of 20% (tax-inclusive). In this basket, the items don't have any special tax rules applied to them, nor do they have any product-specific tax codes, so the tax applied to the basket is just the POS store's default tax rate. 

  1. Tap on "Add customer profile". Search for the customer and select them.
  2. POS notifies you that the selected customer is assigned a tax code and that it will be applied to the basket items. In this case, the selected customer is exempt from tax (0%).
  3. If you select "Cancel", the customer will not be added to the basket. 
  4. Once you confirm that the customer should be added to the basket, the basket's tax is recalculated according to the customer's tax code. 

Removing a customer with a tax code 

If you remove a customer with a tax code from the POS basket, the basket items will automatically be taxed based on the hierarchy (applied from top to bottom):

  • Any active tax rules
  • The products' own tax codes
  • The store's default tax code.

Learn more about how tax is calculated on POS sales here.

In this example, we have the following items in the basket:

  • Red roses, which according to the tax rule set up are taxed with 50% (Made up tax)
  • Snow goggles, which have their own tax code set to 0% (Zero rated)
  • A hat, which is not rated, so it should be taxed with the store's default 20% (VAT).
  1. Before adding a customer, this basket looks like this:
  2. A customer with a 0% tax code is added:
  3. The items in the basket are all taxed with 0%:
  4. If we then tap on the customer's name and select "Remove", the items will return to their previous tax calculation as per the existing hierarchy:

Replacing a customer with a tax code with another customer 

As per the previous examples, when a customer that has a tax code is replaced by another customer we have two possible scenarios:

  • The new customer does not have their own tax code. The items in the basket are taxed as per the standard rules hierarchy.
  • The new customer has their own tax code. The user is informed about the customer's tax code and the items in the basket are taxed according to it. 

Viewing the customer's tax code at the customer modal

If a customer with a tax code is added to the basket, you can look at their tax code via their customer profile.

  1. Tap on the customer's name, then tap "View/edit".
  2. The customer's tax code is listed under the customer details (code, name and rate).
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