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Tax functionality interaction

The modifier tax behavior feature interacts with other tax functionality as follows:

  • Tax Inclusion Setting: A modifier option always inherits its tax inclusion setting from its parent item. Configuring a modifier to either have a specific tax rate or override its parent item’s tax rate will not change the tax inclusion for a modifier or its parent item.

  • Take Out Tax: If a tax rate is configured with a Take Out rate, this rate will be charged on the modifier when the parent item's dining option uses the Take Out dining behavior.

  • Smart Tax: A modifier option always inherits the tax inclusion setting from its parent item. If the parent item's tax inclusion setting is changed as a result of smart tax, this will also apply to its modifiers even if they are set to a different rate or set to override the tax rate of the parent item.=

  • Size Pricing: If a menu item is configured with the size pricing strategy and any of the size modifiers are set to either have a unique tax rate or override the tax rate of the parent item, the tax rate configured on the modifier will apply to the price of the parent item and the tax rate configured for the menu item will be ignored.

  • Tax Exemption: If an order is set to Tax Exempt on the Toast POS device, the Modifier Tax Behavior setting will be ignored and no tax is charged for the modifier option.

  • Master Menu Management: If a modifier is versioned, the Modifier Tax Behavior setting can be changed on a specific version without affecting the setting on the other versions.