Tax Problem

[Andrew de Freitas]

Hi,

The tax feature in Loyverse calculates taxes on the subtotal.

However, government taxes such as Value Added Tax (VAT) are required to be charged on items and services, which would include the Service Charge that restaurants implement.

As it is now, Loyverse does not allow that.

I think you guys should move this up as a priority on your list, as it would mean that all large restaurants would not be able to use Loyverse and it would impact your sales.

There is a quick work around that your team might be able to implement in the interim.

Currently, when we add a TAX in the system it automatically displays the TAX and the %, however, if it were not to display the % and only the Name of the TAX, then the % can be adjusted in the backend to facilitate the difference in the rate.

If I have a bill of $500.. and 2 taxes.. Service Charge @ 10% and VAT @ 12.5%

Currently the bill prints with

“Service Charge, 10% - $50”

“VAT, 12.5% - $62.50”

 

The VAT should actually be $68.75 because it would calculated on the subtotal of $500 plus the $50 service charge.

If you could have your team disable the % being shown automatically and only the name..

I could set the TAX name to include the % but put the rate at a different % to give the correct values.

Eg: Tax name: “Service Charge @ 10%” and set at 10% and then “VAT @ 12.5%” but I can set the VAT to 13.75% which would give me the correct results.

So Subtotal would be $500 and the bill would print with

“Service Charge @ 10% - $50.00”

“VAT @ 12.5% - $68.75”

This will impact many countries including Singapore users. 

I really hope this can be addressed urgently.

Thanks.

[Sam]

Hello there!

Thank you for your feedback. I'll be happy to forward your feedback as a feature suggestion.

In the meantime, we do have a workaround for a Service Charge feature that you may be interested in trying out.

We can take advantage of the "Sold by weight" functionality that allows us to calculate the price for an item based on how much it weighs, and use it to calculate the surcharge that we want to apply.

Let's say you want to add a surcharge of 5% from the total amount. What we will do is create a new item, call it "surcharge" and select "sold by weight". In the price field, we enter 0.05 and save the item.

Now, every time you make a new sale, you can add this item to the ticket, and when the app requests to enter a quantity amount you add the sales total. The result is that the app will calculate 5% of the total as the price of the "surcharge" item and add the item to the ticket. So you will get a new sales total.

These are some examples of how a receipt would look like:


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In each case, the 5% was calculated correctly.

I hope this helps!


[Andrew de Freitas]

Hi,

I appreciate the response and suggested work around.

However, there are still 2 issues. 

My specific scenario is for 2 taxes.

1. For a restaurant there will be several items on the bill and will require time consuming calculation to get the subtotal to know what price needs to be put into the surcharge.

Eg if I add 10 items to the bill and the second tax is automatic then the ticket will show the total including the automatic tax. And the cashier will need to add up the total for the items separately to know the total before the automatic tax.

2. The alternative is to have the 2 taxes as manually added items which will lead to challenges with human error and overall delays in productivity.

While I appreciate the suggestion, I can't put this forward to any of my clients as a possible solution or work around.

Thanks.

[Andrew de Freitas]

This workaround also doesn't work for a tax that has more than 2 numbers. Eg 12.5%, 2.75% etc. 

[Sam]

Hello there, 

Thank you for your reply! Loyverse POS currently does not include a Service Charge feature. However, we've noticed that some users have effectively managed similar requirements by employing a workaround. It's important to note that the effectiveness of this workaround can vary based on individual business circumstances. You can explore this option, but please be aware that its success is not guaranteed.

In the meantime, I have already forwarded your suggestion to our development team. 

[Andrew de Freitas]

Thanks

[Andrew de Freitas]

Hi,

a quick msg to see if there has been any progress with the tax/service charge/surcharge implementation.

Tax on a Tax.