How to add tax on SpotOn POS systems

Adding tax in SpotOn starts with choosing the right tax settings for your business location, order types, products, and local requirements. Businesses may also need to account for item-level tax rules, exempt items, or different settings for dine-in, takeout, delivery, alcohol, or other taxable categories.

Before adding or updating tax settings, confirm the correct sales tax rate with your state or local tax authority. Once you know which rate applies, you can configure taxes in the SpotOn system your business uses. You can also review the SpotOn Knowledge Base for product-specific setup details.

SpotOn tax settings vary by system

SpotOn offers several POS and restaurant management systems, and the process for adding sales tax can vary based on which SpotOn product your business uses. SpotOn Lite, SpotOn Restaurant BOH, and SpotOn Express each have their own tax settings, menus, and configuration options.

Below are general steps for adding tax in SpotOn Lite, SpotOn Restaurant BOH, and SpotOn Express. Your exact process may vary depending on your SpotOn setup, permissions, device, and location settings.

How to add tax on SpotOn Lite

SpotOn Lite lets businesses manage tax settings from the device’s Settings menu. SpotOn notes that the activation flow, before any transactions are processed, is the best time to set up local sales tax, but taxes can also be updated later from the Taxes settings.

To add or edit tax on SpotOn Lite:

1. From the SpotOn Lite device, go to Settings
2. Select Taxes
3. Choose Add Tax or select an existing tax to edit
4. Enter a Tax Name
5. Enter the Tax Amount
6. Configure the tax status or exemption status as needed
7. Tap Save Changes

After saving the tax, review the setup before running live transactions. If your business sells taxable and exempt items, make sure tax settings match how those items should be treated at checkout.

How to manage taxes in SpotOn Restaurant BOH

SpotOn Restaurant BOH allows restaurants to create taxes in the Back Office, set tax percentages by order type, and configure location-specific tax rates when needed. This can help restaurants manage different tax rules for dine-in, takeout, delivery, alcohol, sugar tax, tourism tax, or other tax categories.

After a tax is created, it can be assigned to individual menu items or applied to multiple menu items in bulk.

How to create a new tax in SpotOn Restaurant BOH

To create a new tax in SpotOn Restaurant BOH:

1. From the main BOH menu, select the Taxes icon
2. Select New + to create a new tax
3. In the General Information section, enter a name for the tax
4. Under Tax Rates, enter the correct tax percentage for each Order Type
5. If the tax rate differs by location, select Edit Specific Locations
6. Enter location-specific tax percentages for each applicable order type
7. Click Save to apply the new tax settings

Location-specific tax settings can override the default tax rate, so review those settings carefully if your restaurant operates in more than one location or has different tax requirements by service type.

After creating a new tax, SpotOn recommends testing the tax configuration. Create a test order in the POS and confirm that the correct tax is applied based on the order type, location, and tax percentage.

How to add tax to a menu item in SpotOn Restaurant BOH

After a tax is created in SpotOn Restaurant BOH, it can be assigned to individual menu items. This is useful when different menu items need different tax types, such as sales tax, liquor tax, sugar tax, or state tax.

To add tax to a single menu item in SpotOn Restaurant BOH:

1. From the Back Office, go to Menu Items
2. Select the menu item you want to update
3. Scroll to the Taxes section
4. Click + New Tax
5. Use the Tax Type dropdown to select the appropriate tax
6. If needed, enable Included in Price
7. Save or apply the update according to your BOH workflow

The Included in Price option means the tax is built into the displayed menu price instead of being added as a separate amount at checkout. In that setup, the customer pays the menu price shown, and the business accounts for the tax from that total.

How to apply tax to multiple menu items in SpotOn Restaurant BOH

Taxes can also be applied to multiple menu items in SpotOn Restaurant BOH by using the Select All option from the Menu Items panel. This can be helpful when applying the same tax to multiple items at once.

Before applying taxes in bulk, confirm that the tax already exists in BOH and that each selected item should use the same tax treatment. Changes made to taxes may require menu synchronization across POS devices, so confirm that updates have synced before relying on the new settings during service.

How to add tax in SpotOn Express

SpotOn Express lets businesses create and manage taxes from the SpotOn Dashboard. Taxes can be created, edited, deleted, set as default, configured as exclusive or inclusive, or adjusted with To Go and Delivery Override settings.

To create a tax in SpotOn Express:

1. Log in at dashboard.spoton.com
2. From the left-hand menu, select Account & Settings
3. Select Taxes and Fees
4. Select Add Tax
5. Enter the Tax Name
6. Enter the tax Percent
7. Choose whether to toggle the tax as the Default Tax
8. Select the Tax Calculation Method
9. Choose the Tax Type, either Exclusive or Inclusive
10. If needed, select To Go and Delivery Override
11. Select Save

An exclusive tax is calculated on top of the base menu price and shown separately at checkout. An inclusive tax is already built into the displayed menu price, so the customer pays the listed price rather than seeing an additional tax added at checkout.

The optional To Go and Delivery Override setting allows businesses to configure tax settings based on order type. This may be useful for restaurants with different tax requirements for dine-in, takeout, delivery, or other ordering methods.

After saving, SpotOn should display a banner confirming that the tax was successfully created.

Best practices for managing sales tax settings in SpotOn

Once tax settings are added in SpotOn, review them regularly so your POS continues to support accurate sales tax collection.

Because sales tax can vary by state, city, county, order type, product category, business location, and exemption status, a few best practices include:

• Confirm current tax rates with your state or local tax authority before entering them
• Use clear tax names, such as Sales Tax, Liquor Tax, Delivery Tax, or Sugar Tax
• Review order type settings for dine-in, takeout, delivery, or online orders
• Check item-level tax settings for exempt or differently taxed products
• Test transactions after creating or updating taxes
• Refresh POS devices and sync menus after making tax changes
• Review location-specific overrides if taxes are not applying correctly
• Keep collected sales tax separate from general operating funds whenever possible

These steps can help reduce setup errors, but businesses are still responsible for filing and paying sales tax according to their assigned filing schedule.

SpotOn helps businesses collect sales tax at checkout, but sales tax management does not stop there. After tax is collected, businesses still need to set aside the right amount, file sales tax returns, and submit payments on time.

Simplify SpotOn sales tax with DAVO

DAVO by Avalara helps automate sales tax for busy restaurants, retailers, and other brick-and-mortar businesses. DAVO connects with your POS system, sets aside sales tax daily, and files and pays sales tax when it is due.

Instead of waiting until the filing deadline and trying to separate collected sales tax from operating funds, DAVO automatically moves the sales tax you collect to a secure holding account each day. When your sales tax return is due, DAVO files and pays it according to your assigned schedule.

With a simple one-time setup, DAVO can help your business stay organized and reduce the stress of sales tax deadlines. Schedule a call to learn more about DAVO.

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