People are sometimes confused by the different methods of collecting tax in SP-1. SP-1 is capable of handling five different tax rates with in our standard (non-Canadian) version. We then setup the taxable items in the Menu Group file. As a reminder, Menu Groups are main categories. For example, Coffee, Tea, Pizza, Sandwich, Beverages etc.
In the menu group, you can distinguish further by having a different taxable rates by the order type. Each Menu Group can have a different rate for Carry Out, Dine In, Pick up and Delivery. For example. You might have 8.5% for carry out coffee and 9.5% for dine in coffee etc. There is also the ability to set a Menu Group to the 0 tax rate. That will indicate that this is a non-taxed item. This is different than a tax exempt sale however.
Tax exempt sales happen when you sell an item that is usually taxed to a customer that does not pay sales tax. This is handled by creating a customer record and then setting the taxable switch for that customer to non-taxable.
Not to take this too far but we also have the ability to handle the GST / PST tax rates in Canada. Lastly, we handle a VAT (Value Added Tax) ability and the ability to add a PIF (public improvement fee).
Any questions? Just let us know!