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Settings — Taxes

Feature Overview

Taxes settings are where you define all the tax rates that apply to your restaurant's sales. Katalyst supports multiple tax rates, tax categories (for items that are taxed differently, such as alcohol vs. food), and tax linking (mapping specific tax rates to specific menu items or categories). Configuring taxes accurately here ensures that every transaction is taxed correctly at the POS, and that tax reports reflect your actual obligations.

How It Affects the System

  • Tax rates defined here are applied automatically at the POS when a guest checks out. Every taxable item's price is calculated against the tax rate it is linked to.
  • Tax categories let you group items with the same tax treatment. For example, you might have a "Food" category at 0% tax and a "Alcohol" category at 9%. Assigning items to categories allows precise control without setting individual rates per item.
  • Tax linking maps specific menu items or item categories to specific tax rates. An item that is not linked to a tax rate will be treated as non-taxable. If you change a tax rate here, the new rate applies to all future transactions immediately — it does not change historical sales.
  • Tax data flows into the Tax Detail Report in the Reporting section, which breaks down all tax collected by rate and category.

Prerequisites / Requirements

  • Restaurant edit or view permissions are required.

Step-by-Step Guide

Accessing Tax Settings

  1. Navigate to Settings > Taxes.
  2. The page is organized into three sections: Tax Rates, Tax Categories, and Tax Linking.

Adding a Tax Rate

  1. In the Tax Rates section, click + Add Tax Rate (or the equivalent add button).
  2. Enter:
    • A name for the tax (e.g., "Sales Tax", "Alcohol Tax")
    • The percentage rate (e.g., 8.5 for 8.5%)
    • Whether the tax applies to alcohol items (if the alcohol checkbox is visible)
  3. Click Save to add the rate.

Editing a Tax Rate

  1. Click on the tax rate you want to update.
  2. Modify the name or percentage.
  3. Click Save. The new rate applies to all future transactions.

Creating a Tax Category

  1. In the Tax Categories section, click + Add Category.
  2. Enter a category name (e.g., "Food", "Beverages", "Alcohol").
  3. Click Save.

Linking Taxes to Menu Items or Categories

  1. In the Tax Linking section, locate the menu item or category you want to link.
  2. Select the appropriate tax rate from the dropdown next to each item.
  3. Click Save to apply the link.

Common Troubleshooting / FAQs

Q: An item is not being taxed at checkout even though I added a tax rate. A tax rate must be linked to a menu item or category through the Tax Linking section to be applied. Simply adding a tax rate does not automatically apply it to any items. Return to the Tax Linking section and connect the rate to the correct items or categories.

Q: I need to update our tax rate due to a local tax change. Will it affect past transactions? No. Tax rate changes in Settings > Taxes only affect future transactions from the moment the change is saved. All historical sales and reports will continue to reflect the tax rates that were active at the time of each transaction.