Tax by Destination
Core Product: Aloha Takeout
Complimentary Products: Aloha Quick Service, Aloha Table Service
Separate License Required? An Aloha Takeout and Delivery license is required.
Other References: Aloha Takeout Reference Guide, Aloha Takeout Implementation Guide
Tax regulations may require you to assess taxes based on the location to which you deliver or cater an order rather than the location of your restaurant, referred to as 'tax by destination.' Aloha Takeout v13.1 enables you to easily comply with tax by destination using tax functionality available in the Aloha POS system, and options available in Aloha Takeout. The Tax by Destination feature keys off of the ZIP code to which you deliver or cater an order. If the ZIP code is one for which tax by destination rules apply, the system calculates the tax using the tax rate you establish for that ZIP code.
If you are a site already using Aloha Takeout, not a new installation, do not alter your existing tax types or flex tax rules, as you use these for calculating taxes based on the location of your store. You do, however, need to build on your existing tax structure and create new tax types and flex tax rules specifically for supporting the Tax by Destination feature.
SCENARIO: Your restaurant resides in ZIP code 76155 and delivers to two additional ZIP codes, 76021 and 76039, which are subject to different tax rates than ZIP code 76155. Additionally, deliv- ered bottled water is not subject to tax. It is necessary for you to configure and use the Tax by Des- tination feature.
For the purpose of demonstrating the Tax by Destination feature, the procedures included in this document assume this is a new Aloha Takeout installation and depict how to configure Tax by Destination to meet the requirements for this scenario.
Note: To support the Tax by Destination feature, you must be on Aloha POS vs 13.1 or later.
Reference: Refer to the Aloha Takeout Tax by Destination Feature Focus Guide - HKS383.
Configuring Tax by Destination in Aloha POS
There are a number of configuration requirements within the Aloha POS to support the Tax by Destination feature. Do not alter existing tax types or flex tax rules, but rather create new ones to use specifically, and only, for supporting Tax by Destination.
- Creating tax locales
- Creating tax types
- Creating flex tax rules
- Creating flex tax rules of "Always" method needed to support Tax by Destination
- Creating flex tax rules of the "Tax locale" method needed to support each tax locale subject to Tax by Destination
- Creating flex tax rules of the "Tax locale" method needed to support additional tax rules for Tax by Destination
- Creating or editing tax groups
- Assigning items
- Providing the ability to override Tax by Destination
Configuring Tax by Destination in Aloha Takeout
Once you complete the configuration steps within the Aloha POS, you then configure tax by destination in Aloha Takeout. First, you enable tax by destination for each order mode for which tax by destination applies and then you define the tax locales for Aloha Takeout.
- Enabling Tax by Destination by order mode
- Associating ZIP codes in your delivery area to POS tax locale
- Refreshing POS data