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Modifier tax behavior examples

The modifier tax behavior feature enables modifiers to have a different tax rate than their parent items or to override the tax rate of their parent item. The following are examples of when each of these settings would be used:

  • Unique Tax Rate for Modifier: As a food item, cake is taxed at a rate of 6.5%, but one of its possible non-edible decorations (such as a bow or a candle) is taxed at a rate of 4% as a retail item. Cake is configured as a menu item while the bow and candle are optional modifiers.

  • Modifier Tax Rate Overrides Parent Menu Item Tax Rate: A cold ham and cheese sandwich is normally taxed at 5%. However, if the customer requests that it be heated, it is taxed at the higher rate of 7%. The ham and cheese sandwich is configured as a menu item and hot is configured as an optional modifier.