Sales Taxes Overview

Tax rates' specific percentages are configured on the Tax section of Settings on HQ. How tax rates get sold is configured on menu settings

Tax Rate Management

Tax rates can be managed from the Tax page on HQ. To add a tax rate:

  1. Login to Breadcrumb HQ 
  2. Click "Settings" on the top navigation bar
  3. Click "Tax" on the left navigation bar
  4. Click Add
  5. Create a Name for the tax
  6. Enter the Tax Rate
  7. Click Save

 

If you would like to track tax for comped items, check the "Track taxes for comped items" toggle. Learn more about tracking taxes on comped items.

 

Assigning Tax Rates

Tax rates are assigned to items in the Menus section of Breadcrumb HQ. Learn how to assign a tax rate to an item here.

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Inclusive and Exclusive Taxes and Tracking

Tax rates can be set as inclusive or exclusive from the Categories section of Breadcrumb HQ.

  • Inclusive tax means that the price of an item includes sales tax; exclusive tax means that tax is added to the price of an item. Items that include tax usually indicate that the venue assumes responsibility for the tax.
  • Exclusive tax means that the price of an item is as is and sales tax will be added on top of the price. Items that exclude tax will add tax in the final balance.

If all items on a check are tax inclusive, the receipt tax line will show "inclusive" and the tax amount will be reported in your Daily Sales report. 

If all items on a check are tax exclusive, the tax is calculated based on your tax rate and appears on the receipt as tax. 

Beginning with Breadcrumb 2.9 (May, 2017), Breadcrumb will support two options for tracking taxes on checks that contain a mix of tax inclusive and tax exclusive items. Select your preference in the Tax Inclusive/Exclusive Tracking. 

What the selections mean:
Apply tax to the full item price (including the tax) - All items are assumed to be tax exclusive and tax will be charged based on the item price. So, if a $6.00 tax inclusive beer is on the bill along with one or more tax exclusive items, the tax rate will be applied to the $6 price of the beer. This is how Breadcrumb has worked before release 2.9 and this is the default tax handling. 

Reduce the price of inclusive items by the tax amount - The price of the tax inclusive item will be reduced by the amount of the tax and the tax will appear on the tax line of the check. So, if that $6.00 tax inclusive beer is on the bill along with a $10 tax exclusive burrito, the tax rate will be backed out of the inclusive item's price and will appear on the tax line on the receipt. 

Learn how to apply inclusive tax and exclusive tax to menu categories here.

Examples of Receipts with Different Tax Types

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Tax Rates in Action 

Breadcrumb calculates sales tax using a set formula – learn more about sales tax calculations.

Tax Exemptions – Learn how to set a check to be tax exempt.