Smart Tax Feature

The History Of The Smart Tax Feature

Inclusive sales tax has been around since the creation of the sales tax.  It is simply selling the item with tax included in the price.

For the purposes of calculating the sales total and change due this makes perfect sense.  In operations such as bars, this is a perfect application for inclusive tax.  Charge a rounded up price for the drink and include the tax in the price.  The sale is easily tallied and change given without much need for small change.

The Need For The Smart Tax Feature

The need for special tax calculations arise when you sell the same item in the restaurant where the tax is added onto the sale.  People have become accustomed to paying tax in a restaurant.  They hardly look at the tax line anymore.  They look down the items on the check and then the total.  Most often if the bill looks close they pay without any attention being paid to the tax line.

The way we look at this situation is simple.  A $3.00 drink in the bar includes the sales tax.  The same drink in the restaurant is charged $.21 sales tax, assuming a 7% tax rate.  In the restaurant the customer pays the sales tax.  In the bar the restaurant/bar owner pays the sales tax.

Therefore, the need for Directouch Point of Sale and Smart Tax.

The Solution For The Smart Tax Feature

The Smart Tax feature in Directouch Point of Sale does all the work for you.  No server or bartender intervention or decision making is necessary.

When a drink is rung up at the bar the tax is assumed to be inclusive.  This is no different from what you are probably doing now.  A $3.00 drink simply rings up as $3.00.

However, if a food item is added to the tab or ticket then the software changes the tax status for the entire ticket to be tax exclusive and the drinks now have tax added to their total.

Your customer is simply being charged the same price as your restaurant customer, nothing more.  Instead of the owner paying the sales tax the customer is now paying the sales tax.  Click this link to view the on-line tutorial for this feature.

The Benefit Of The Smart Tax Feature To You

Let's look at a couple of sales and how they would add up differently using the Smart Tax feature.

Bar Sale Drink Drink Food Item 7% Sales Tax $3.00 $3.00 $4.00 $.28 Total Sale $10.28

Restuarant Sale Drink Drink Food Item 7% Sales Tax $3.00 $3.00 $4.00 $.70 Total Sale $10.70

The difference between these 2 sales appears to be only the $.42 in sales tax.  However, most people forget that there is tax to be paid from the bar sale as well.  The $.28 sales tax paid by the customer must be added to another $.40 that is paid by the restaurant/bar owner on the 2 drinks sold.  This is nothing more than a reduction in the profits of your business to pay the sales tax for your customer.

With Directouch Point of Sale and Smart Tax the customer pays the sales tax on bar sales with food items.  Your profits are yours and not the government's.

In a bar operation doing as little as $250 per day the monthly savings from this feature could be as much as $525 per month.  Imagine what yours could be!

The Setup Of The Smart Tax Feature

This feature is automatically turned on when you install the software.  Follow these steps to turn the feature OFF.

1. Enter Security Access Number
2. Click "Manager Menu"
3. Click "Register Setup"
4. Click "Register Options"
5. Click "Full Service" tab
6. Under General Options Section click "Disable Inclusive Tax Adjustment"
7. Click "Save"
8. Click "Exit"
9. Exit back to sign on screen.
10. The feature is now disabled and you are reducing profits to pay sales tax for your customers.

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