Scope
Service Types
Dine-in → Normal tax rate applies
Takeout → Eligible for exemption
Delivery → Eligible for exemption (same as takeout)
Applicable Items
Cold drinks and cold foods (e.g., bubble tea, smoothies, salads)
Hot food Not eligible
How to Configure
Requires POS APP v3.51.0 or above
Access to the Dashboard (https://pos-dashboard-staging-01.chowbus.com/), click the Menu bar, and select "Menu Builder"
Select the menu where the dish you want to operate is located and click the edit button of the dish
In the dish tax code setting, you can choose to set tax exemption. Remember to click the save button in the upper right corner to take effect.
Support tax exemption settings in bulk update
Applicable for cold food/drink categories
Supports differentiating cold vs hot items in same category
In the Menu bar, select Dishes
In the bulk management settings, select the food categories that need to be tax-free in batches, and click the "Update Multiple" button
In the Update Multiple settings, select Yes or No tax exemption. After setting, click the Apply button.
Notes
Applies only to non-dine-in orders (takeout & delivery).
Exemption rules vary by state, merchants must comply with local regulations:
CA → Regulation 1603
OH → Cold food takeout exempt
Most other states → still taxable
When configuring the menu, if a beverage has a customization option for hot drinks, it must be split into two separate items to ensure that hot drinks are properly taxed.
If you have any other questions, please contact Chowbus customer service!