A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. When goods are taxed, a percentage of their price has to be paid to the government. This is usually VAT (Value Added Tax). But not all companies are subject to a tax charge. In this tutorial, we will show you how to activate and deactivate taxes on NexoPOS.

How to activate taxes

In order to enable taxes, go to the “Checkout” sub menu of NexoPOS settings as mentionned below.

This page has various tabs including “taxes”, which contains all the parameters related taxes. Two types of taxes are available on NexoPOS : fixed tax and variable taxes.

  • Fixed tax assume that you are subject to a single tax where the tax rate does not change.
  • Variable taxes mean the application of several taxes according to your tax system during the sales process

How to enable fixed taxes

On the checkout settings, click on the “Enable VAT” field and choose the “VAT fixed” option. You must also set the rate of your VAT. Just enter the numeric value of the percentage, 15 for example. Note that this value should not exceed 100.

You must confirm your action by clicking on the “Save settings” button.

When this feature is enabled, the cart of the POS (Point Of Sale) contains the following elements at the bottom of the page:

  1. Net excluding tax: This is the amount of the order without taxes. For the example $ 17.99.
  2. VAT (15%): this is the amount of the tax charged on the order. In our example, the rate is 15%, so a $ 2.70 tax is levied.
  3. Net payable: This is the total amount payable. So it’s the sum of the net amount excluding tax and the amount of VAT. For the example, this amount will be $ 20.69 ( $ 17.99 + $ 2.70)

The POS screen will look like this:

How to enable variable taxes

Once again, click on the “Enable VAT” field, but now choose the “Variable VAT” option. it’s not necessary to fill in the field of VAT rate. this is the first step.

The second step consist now to create taxes which might apply to the cart according to your requirements. You can create as many taxes as you want. So click on the “Add tax” sub-menu of the “inventory” menu.

On the creation page of taxes, You will have to fill in 3 fields.

  • The name of the tax, of course it’s a mandatory field. VAT1 for example.
  • The tax rate is necessary for the automatic calculation of the tax. 20% for example.
  • The description, if you want to describe your new tax.

Once you’re done, you can use the tree available buttons :

  1. “Save” button, which save the tax and allow you to proceed with the data entry.
  2. “Save and go back to the list” button, which save the tax and takes you back to the categories list.
  3. And “Cancel” button, which reset the form and takes you to the taxes list.

When this feature is enabled, the cart of the POS (Point Of Sale) contains the following elements at the bottom of the page:

  1. Net excluding tax: This is the amount of the order without taxes. For the example $ 17.99.
  2. Tax Field: Here you set the variable tax of your choice on the order. In our example, the rate is 20%, so a $ 3.70 tax is levied.
  3. Net payable: This is the total amount payable. So it’s the sum of the net amount excluding tax and the amount of VAT. For the example, this amount will be $ 21.59

The POS screen will look like this:

How to deactivate taxes

In order to disable taxes, you need to access to the checkout settings page, then access to the taxes settings and disable the taxes.

On the “Checkout Settings” page

The process of deactivation of taxes is similar to that of its activation. Then simply select the “Disable” option on the “Enable VAT” field. Of course, don’t forget to save your action on the “Save settings” button.

When this feature is disabled, the contents of the cart switch. Now we have the sub total (1) and the net payable (2). The POS screen will look like this:

Wrapping up

Working with taxes helps you to have them calculated out of the box, with any specific manual process. Variable and fixed taxes are the two types of taxes available on nexopos. You can enable or disable it on the Checkout Settings and on the tab “taxes”.