Taxes & Charges in SalesPlay POS
How to Add Taxes
A tax is a mandatory financial charge or fee imposed by a government on the sale of goods and services. Businesses collect these taxes from customers and later pay them to the relevant tax authority.
SalesPlay POS allows businesses to manage taxes and extra charges on their products or services with flexibility.
Types of Taxes in SalesPlay
Taxes are fees added to products or services, often required by law. In SalesPlay POS, there are two main types of taxes:
1. Included in the Price
2. Added to the Price
Included in the Price:
“Included in the Price” tax means the tax amount is already part of the product’s listed or displayed price. The customer sees one total price, and the system internally separates the tax portion for reporting and accounting purposes.
Example:
A product is sold for Rs. 1,000, and this amount already includes 15% VAT. The customer pays Rs. 1,000 — no additional tax is shown at checkout.
Added to the Price :
“Added to the Price” tax means the product’s listed price does not include tax. The tax is calculated and added separately at the time of billing, and the customer pays the base price plus the tax.
Example:
A product is priced at Rs. 1,000. With 15% VAT added at checkout, the customer pays Rs. 1,150.
Taxes can be applied to new products, existing ones, or both. You can also choose if a tax is calculated after other taxes/charges or just on the base price.
Enabling Taxes
Setting up taxes is straightforward. Follow these steps in the POS Back Office web portal:
Login to POS Back Office Web Portal.
Go to Settings > Feature.
Turn ON Taxes and Charges.
Click Save.
A new Taxes/Charges menu will appear under Settings.
Adding a New Tax
Go to Settings > Taxes/Charges.
Click Add Taxes and Charges.
Select type: TAX.
Choose a calculation method:
Included in the Price
Added to the Price
Enter a Name, Code, and Value (percentage).
Choose how to apply it:
To new products
To existing products
To both
To selected products
Turn ON Apply on value after other taxes/charges if needed.
Set Status to ON.
Click Save.
How Taxes Are Calculated
Let's look at how each type works with easy math.
1. Included in the Price
Formula:
Pre-Tax Price = Price / (1 + Tax Rate)
Tax Amount = Price - Pre-Tax Price
Example:
Product price: 100
Tax: 10%
Pre-tax price = 100 / 1.10 = 90.91
Tax amount = 100 - 90.91 = 9.09
Printed receipts show total tax. E-receipts and PDFs show tax per product.
2. Added to the Price
Formula:
Tax Amount = Price x Tax Rate
Final Price = Price + Tax Amount
Example:
Product price: 100
Tax: 15%
Tax = 100 x 0.15 = 15
Final price = 100 + 15 = 115
3. Added to the Price with Discount
Discounts reduce the price before tax.
Example:
Product price: 100
Discount: 20%
Subtotal after discount = 100 - 20 = 80
Tax (10%) = 80 x 0.10 = 8
Total = 80 + 8 = 88
What is a Charge?
A charge is an additional fee added to the price of a product or service. Unlike taxes (which are government-mandated), charges are usually set by the business to cover specific costs or provide extra services.
Charges can be fixed amounts, variable, or percentages and are commonly used for things like:
Service Charge (e.g., in restaurants or hotels)
Packaging Fee
Delivery Fee
Surcharge for special items
Example:
Product Price: Rs. 1,000
Service Charge (10%): Rs. 100
Total: Rs. 1,100
In SalesPlay POS, charges can be configured just like taxes and applied automatically during billing. You can also control whether charges are calculated before or after taxes.
Types of Charges
Included in the Price – Already part of the product price.
Added to the Price – Added at checkout.
Fixed Charge – A flat fee (e.g., Delivery Fee).
Enabling Charges
Setting up charges is straightforward. Follow these steps in the POS Back Office web portal:
Login to POS Back Office Web Portal.
Go to Settings > Feature.
Turn ON Taxes and Charges.
Click Save.
A new Taxes/Charges menu will appear under Settings.
Adding a Charge
Go to Settings > Taxes/Charges.
Click Add Taxes and Charges.
Select type: Charge.
Choose a calculation method:
Included in the Price
Added to the Price
Fixed Charge
Enter a Name, Code, and Value (percentage or fixed).
Choose how to apply it:
To new products
To existing products
To both
To selected products
Turn ON Apply on value after other taxes/charges if needed.
Set Status to ON.
Click Save.
Assign Charges to Order Types
Use this if your business offers order options like Dine-in, Takeaway, Delivery.
Steps:
Go to Settings > Feature > Turn ON Order Types > Save.
Go to Settings > Order Types.
Click on Dine-in, Takeaway, or Delivery.
Turn Status ON.
Under "Attach Tax & Charges", select applicable items.
Click Update.
Note: POS users must select the correct Order Type when billing.
Apply Multiple Taxes and Charges
You can apply multiple taxes and control the order of their calculation using the "Apply after other taxes" option.
Example 1: With Option ON
Product Price: 100
Service Charge: 10% (ON)
GST: 9% (ON)
Calculation:
Service Charge = 100 x 10% = 10 > Subtotal = 110
GST = 110 x 9% = 9.90
Total = 119.90
Example 2: With Option OFF
Product Price: 100
Service Charge: 10% = 10 > Subtotal = 110
GST = 100 x 9% = 9
Total = 119.00
Customizable Fixed Charges
Useful for varying fees like Delivery based on distance.
To Enable:
Go to Back Office > Settings > Turn ON Taxes/Charges.
Go to Taxes/Charges > Add.
Select Type: Charge.
Method: Fixed.
Add Name (e.g., Delivery Charge), Value.
Turn ON "Change upon sale".
Set Status ON > Save.
To Use in POS App:
Start a New Sale.
Add products to the cart.
Tap the 3-dot menu > Add Tax/Charges.
Adjust charge amount.
Turn charge ON > Done.
Calculation of ‘Added to the Price’ Tax with Modifiers, Discounts, and Fixed Charges:
Product Price
+ Modifiers
− Line Discount (applied to specific product)
− Invoice Discount (applied to entire bill)
= Subtotal
+ Tax (calculated on subtotal)
+ Fixed Charge (e.g., service charge or packaging fee)
= Grand Total
Example Calculation: Tax with Modifiers, Discounts, and Charges
Product: Tomato = 100
Modifier (Butter): +10 → 110
Line Discount: 5% of 110 = -5.50 → 104.50
Invoice Discount: 20% of 104.50 = -20.90 → 83.60
Tax (VAT 15%) = 83.60 x 0.15 = 12.54 → 96.14
Fixed Charge (Delivery) = 50
Grand Total = 96.14 + 50 = 146.14
Steps-by-step
To calculate the total of a receipt in SalesPlay POS when including modifiers, discounts, taxes, and fixed charges, follow a clear step-by-step process. Here's how it works, explained in simple sentences using the example of a Tomato priced at $100.
First, start with the product price and add any modifiers, which are extra items or services that increase the cost. For example, the Tomato costs $100, and adding a modifier like "Butter" costs an extra $10. So, $100 plus $10 equals $110.
Next, apply a line discount, which is a percentage reduction on the individual item’s total (including modifiers). In this case, there’s a 5% line discount on the $110. To calculate, multiply $110 by 0.05, which is $5.50. Subtract $5.50 from $110, leaving $104.50.
Then, apply an invoice discount, which is a percentage reduction on the entire bill so far. Here, there’s a 20% invoice discount on the $104.50. Multiply $104.50 by 0.20, which equals $20.90. Subtract $20.90 from $104.50, resulting in $83.60.
This $83.60 is the subtotal, which is the amount after all discounts but before taxes and charges.
Now, calculate the tax on the subtotal. The example uses a 15% VAT. Multiply $83.60 by 0.15, which gives $12.54 as the tax amount.
After that, add any fixed charges, which are set amounts not based on a percentage. In this example, there’s a $50 “Delivery” fixed charge.
Finally, add the subtotal, tax, and fixed charge to get the grand total. So, $83.60 (subtotal) plus $12.54 (tax) plus $50 (fixed charge) equals $146.14.
The grand total for the Tomato, with the honey modifier, discounts, tax, and fixed charge, is $146.14. This step-by-step method ensures the calculation is clear and accurate.
Receipt Example