Sales Tax Configuration

Learn how to configure and manage sales tax for your orders

Overview

ChefOrdering allows suppliers to configure sales tax settings for their business. Tax is automatically calculated and applied to all orders based on the supplier's configured tax rate.

Note: Tax configuration is managed at the supplier level. Each supplier can set their own tax rate and enable/disable tax calculation independently.

For Suppliers: Configuring Tax Settings

Step 1: Navigate to Settings

  1. Log in to your supplier account
  2. Click on your profile icon in the top right
  3. Select "Settings" from the dropdown menu
  4. Go to the "Business Details" tab

Step 2: Configure Tax Settings

In the "Sales Tax Configuration" section, you'll find:

  • Enable sales tax calculation: Toggle this checkbox to enable or disable tax for all your orders
  • Tax Rate (%): Enter your sales tax rate as a percentage (e.g., 8.50 for 8.5%)

Tax Rate Guidelines

  • Tax rate must be between 0% and 99.99%
  • Enter the rate as a decimal (e.g., 8.5 for 8.5%, not 0.085)
  • The tax rate input only appears when tax is enabled
  • Changes apply to new orders immediately

Important: Changing your tax rate only affects new orders. Existing orders will retain the tax rate that was in effect when they were created.

How Tax is Calculated

Tax is automatically calculated based on the order subtotal:

Formula:

Tax Amount = Subtotal × (Tax Rate / 100)

Example:

Subtotal: $100.00

Tax Rate: 8.5%

Tax Amount: $100.00 × (8.5 / 100) = $8.50

Total: $108.50

When Tax is Applied

  • Order Creation: Tax is calculated when buyers or sales reps place orders
  • Order Modifications: Tax is recalculated if order items are modified
  • Cart Preview: Tax is shown in real-time as items are added to the cart

For Buyers: Understanding Tax on Orders

Viewing Tax in Cart

When creating an order, the Order Summary will display:

  • Subtotal (sum of all items)
  • Tax (with percentage) - only shown if the supplier has tax enabled
  • Total (subtotal + tax)

Viewing Tax on Order Details

After placing an order, you can view the complete tax breakdown on the order details page:

  • Navigate to "Orders" from your dashboard
  • Click on any order to view details
  • The order summary shows subtotal, tax, and total

Tip: If you don't see tax on an order, it means the supplier has not enabled tax calculation for their business.

For Sales Reps: Tax on Orders

When placing orders on behalf of buyers, tax is automatically calculated and displayed in the Order Summary based on the selected supplier's tax settings.

  • Tax calculation is automatic - no manual entry required
  • Tax rate is determined by the supplier's configuration
  • Tax breakdown is visible in the cart and order details

Frequently Asked Questions

Can I set different tax rates for different buyers?

No, the current system uses a single tax rate per supplier that applies to all orders. All buyers ordering from your business will have the same tax rate applied.

What happens if I change my tax rate?

Changes to your tax rate only affect new orders placed after the change. Existing orders will retain the tax rate that was in effect when they were created.

Can I disable tax temporarily?

Yes, you can uncheck the "Enable sales tax calculation" checkbox in your Business Details settings. This will disable tax for all new orders until you re-enable it.

Is tax applied to delivery fees?

No, tax is only calculated on the order subtotal (sum of all items). Delivery fees are added separately and are not subject to tax.

How is tax handled during order modifications?

When an order is modified (items added, removed, or quantities changed), the tax is automatically recalculated based on the new subtotal using the supplier's current tax settings.

Need More Help?

If you have questions about tax configuration or need assistance, please contact our support team.