Accurate tax configuration ensures compliance with local tax laws and prevents errors in your financial reporting. This guide covers setting up single and multiple tax rates, assigning taxes to items, and handling tax-exempt transactions.
Step-by-Step Instructions
- Log into dashboard.clover.com. Navigate to Setup > Taxes & Fees.
- Click 'Add Tax Rate.' Enter the tax name (e.g., 'State Sales Tax'), the percentage rate, and whether it applies to all items by default.
- For multiple tax rates: create separate rates for each (e.g., food tax and beverage tax). Assign each rate to the appropriate inventory items.
- To assign a tax to specific items: edit the item in the Inventory app and select the applicable tax rate(s) under the 'Tax' field.
- To mark an item as tax-exempt: edit the item and select 'No Tax' from the tax dropdown.
- For tax-exempt customers: at checkout, a manager can apply a tax exemption to the entire order. Always document the exemption reason.
- Verify your setup by running a test transaction and reviewing the receipt to confirm taxes are applied correctly.
📌 Important Note: Clover calculates taxes on net sales after discounts. Always consult a tax professional to confirm your applicable rates — tax laws vary significantly by state, county, and municipality.
Frequently Asked Questions
Yes, if you assign the correct tax rate to each item type. Clover does not pull rates from a tax database — you must enter them manually.
Go to Setup > Taxes & Fees, select the existing tax rate, and update the percentage. The new rate applies immediately to new transactions.
Yes. In the web dashboard, navigate to Reports > Taxes. This report shows gross sales, tax collected, and net sales for any selected date range.
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