Every country, and in the US every state and often every county, taxes groceries differently. The software handles many rates at once; your job is to tell it which rate goes on which item. We do not give tax advice: confirm your rates with your accountant before you go live.
The three country patterns
| United States | UAE | Pakistan | |
|---|---|---|---|
| Tax | Sales tax: state + county + city | VAT, 5% on most goods | Sales tax as it applies to your registration and goods |
| Groceries | Often exempt or reduced; prepared food, soda, non-food often taxed | Most goods standard-rated | Depends on goods and your status |
| Shelf price | Without tax | With VAT included | Without tax |
| At checkout | Tax added | VAT shown inside total | Tax added where it applies |
Create a tax rate
- Open the tax rates screen in settings.
- Click Add.
- Give it a name staff and accountants understand, such as “TX state 6.25%” or “UAE VAT 5%”.
- Enter the percentage.
- Save. Repeat for each rate.
Combine rates with a tax group
In much of the US, one item carries several rates: state, county, city, special district. Instead of choosing four rates on every product, create one tax group.
- Open tax groups and click Add.
- Name it, for example “Houston combined”.
- Tick the rates it includes.
- Save. The group’s total is the sum of its rates.
Assign the group to taxable products.
Inclusive or exclusive prices
- Exclusive (US, Pakistan): the price you type is before tax. Tax is added at checkout and shown on the receipt.
- Inclusive (UAE): the price you type already includes VAT. The receipt shows how much of the total is VAT.
Set this once and stay consistent across your catalogue. Mixing the two causes tax to be added twice or not at all.
Inline tax or invoice tax
- Inline tax: calculated on each line. Each item shows its tax. Useful when items carry different rates.
- Invoice tax: one tax on the whole sale. Simpler receipts.
Most grocery baskets mix exempt and taxable items, so many stores choose inline tax.
Assign tax to products
- In your import spreadsheet, fill the tax column for each product, or
- Edit products one by one, or by category.
- Leave exempt groceries with no tax.
Check a sample: ring up one exempt item, one taxable item and one item in your tax group, and compare the receipt with what your accountant expects.
SNAP and tax
In the US, items bought with SNAP benefits are not charged sales tax. If you accept SNAP, check how your EBT processor and the split tender handle tax on the SNAP part of a basket. See accept SNAP/EBT.
Common problems
Tax added twice in the UAE. Prices are inclusive but set as exclusive. Fix the price setting.
Exempt groceries show tax. The products were imported with a tax rate. Clear the tax on those products.
The receipt total is a cent off. Inline and invoice tax round differently. Choose the method your accountant prefers and keep it.
A new local rate started. Edit the rate’s percentage or add the new rate to the group. New sales use the new rate.
Related: Set up your business · Accept SNAP/EBT · Countries we serve
