Tax Builder is a great powerful tool for flexible and precise configuration and calculation of taxes, applicable to the majority of tax assessment regulations across the USA and Canada.
Tax Builder provides the ability to:
- automated transition of pre-existing IndicaOnline tax calculating system to Tax Builder;
- calculate all important business taxes, such as Excise, Local and Sales;
- create new calculated taxes at your discretion;
- calculate taxes based on order delivery addresses (for delivery orders);
- customize calculations of each tax type, depending on the conditions which are important for your business (include different taxes one into another or into the retail price, handling discounts and delivery fees taxwise, etc.)
ATTENTION. By default, Tax Builder introduces Excise, City Local tax and Sales tax within each tax tier. Whenever you need to handle additional taxes, please create a new tax within a tax tier and set it up accordingly.
For any questions concerning the breakdown of your tax rates please contact your local tax consultants. For dispensaries located in the State of California, we recommend referring to the California Department of tax and fee Administration via this link: https://www.cdtfa.ca.gov
How to Use Tax Builder
Tax Builder is available via the web access to your IndicaOnline account by navigating to Config -> Tax.
On the opened Tax Settings page, toggle the Enable Taxes and Tax Calculations switch to Yes.
Enable the Include Taxes for Minimum Order calculation toggle if you want to compare Minimum Order for Delivery with Subtotal + Taxes - Discounts, and disable to compare Minimum Order for Delivery with Subtotal - Discounts.
Enable the Include Taxes for Free Delivery calculation toggle if you want to compare Free Delivery for Delivery with Subtotal + Taxes - Discounts, and disable to compare Free Delivery for Delivery with Subtotal - Discounts.
Add New Tax Tier
NOTE. When creating a new tax tier, the tax rates are set using pre-defined location-based rates for the tax in question.
To add a new tax tier, do the following:
Under the Tax Settings banner, click the New button.
Set Taxes for Tax Tier
In order for the newly created tax tier to start working, you should set it up first.
•City Local Tax can be applied both to a product marked as an MMJ product and a product specified as a non-MMJ product in its corresponding product profile in IndicaOnline.
•Excise Tax is applied to MMJ products only. Please note that excise tax for self-distributed products is calculated based on the retail price only, whereas for non-self-distributed products you can specify whether it will be calculated based either on the retail price or the cost. If the excise tax is already included in the sale price, you do not have to set it as a separate tax percentage.
NOTE. Excise Tax tab is for California-based dispensaries only. For any other states we recommend to specify your excise tax (unless it is included in the product price) under City Local Tax tab.
•Sales Tax can also be applied both to MMJ and non-MMJ products. In certain cases, some types of medical patients will not pay sales tax for cannabis products, but will pay sales tax on other items.
City Local and Sales Taxes are enabled by default for California-based companies, but will not be active until you approve the location-based pre-defined tax rates by clicking the corresponding buttons at the end of the tax setup.
Locations will be added automatically to all the taxes according to the information you have specified in Location and Contact Information section on your Office settings page.
NOTE. Adding a new office or changing the office address will automatically add a new tax location to the list with the default location-based pre-defined tax rate, which you will need to approve.
If Count <TaxName> Tax based on customer delivery address for delivery orders option is checked for City Local Tax or Sales Tax, an additional Delivery Zones Locations block will pop up below.
You will need to add all your delivery locations and they will be populated with location-based pre-defined tax rates. This operation is available for City Local Tax and Sales Tax only. Moreover, adding delivery locations to City Local Tax will automatically duplicate the location list under Sales Tax if the settings are mirrored between the taxes.
To set up a tax tier, do the following:
1) On the Tax Settings page, click the Edit button, corresponding to the tax tier that you would like to edit.
2) On the Edit Tax Tier page, use the navigation menu to set up a tax within the tax tier.
Toggle the tax switch to ON to enable the tax.
3) Select the checkboxes with the settings that you wish to be enabled. Hover over the icon to get a detailed explanation of the option.
4) Enter the valid tax rates in the corresponding fields.
If you want to reset a specific tax to a default pre-defined value, click the Reset To Default button to the right of the corresponding tax.
After you have verified all your tax rates for a specific tax (i.e. City Local Tax), click the Approve All button, and then click the Save button.
5) Repeat steps 1-5 for other taxes.
6) To change a tax tier name, enter the desired name in the Tax Tier Name field.
Add New Tax
To add a new custom tax to a tax tier, click the + Add New Tax button on the Navigation Menu.
NOTE. Custom taxes will not have a pre-defined value set initially, so you will not have an option to revert to a default tax rate.
Then click on the newly created tax to navigate to the respective tax settings.
IndicaOnline will calculate all your taxes based on the values you have specified in the following order:
Excise tax, City local tax, Sales tax, custom tax.
Click the Save button to save your tax settings.
Click the Delete button to delete the current tax tier, or Back To List to get back to the tax settings menu without saving.
Apply Tax Tiers To Patient Types
Finally, you will need to apply the tax tiers you have just created to the corresponding patient types
and press the Save Changes button.
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