Detax (VAT)
Detax is the full removal of tax for special groups of customers. Detax updates the transaction total (unlike tax rebates). Detax is typically used with certain customers who are exempt from paying tax (e.g. diplomats). To use Detax, you must configure Prism preferences to enable the feature. You can configure detax to occur automatically and/or manually. If you want detax to occur automatically, select the Detax flag in the customer record of eligible customers and select the "Zero Out Tax for Detax Customers" option in preferences.
Detax Use Cases
| Use Case | Notes |
|---|---|
| Detax Customer - Manual Detax | A customer, marked for Detax, makes a purchase for export. The transaction is created and manually Detaxed by the cashier. |
| Detax Customer - Automatic Detax | A customer, marked for Detax, makes a purchase for export. The transaction is created and automatically Detaxed. |
| Non-Detax Customer - Manual Detax | A customer, not marked for Detax, makes a purchase for export. The transaction is created and manually Detaxed by the cashier. |
Configure Detax
Enable Detax and Configure Detax Preferences
The following preferences control to Detax. To access these preferences, go to the Admin Console and select Node Preferences > Taxes > General. Refer to the following table for a description of the preferences.
| Preference | Description |
|---|---|
| Zero Out Tax for Detax Customers | This preference is only available if the Tax Method is set to VAT (or ICM). If selected, when a customer whose Detax field is selected is added as the Bill To or Ship To customer on a transaction, the Tax $ amount will be removed/set to 0. Use this option if you want the Detax to occur automatically at POS. |
| Apply Detax to Tax % | This option enables manual detax for non-detax customers (or no customer). |
| Apply Detax to Shipping | This option enables users to manually remove tax on shipping (if a tax percentage is assigned for Shipping). |
| Apply Detax to Fees |
This option enables users to manually remove tax on fees (if a tax percentage is assigned for the fee). |
| Apply Detax [Before or After Discount] |
Controls when detax is applied, before or after discounts.
Note: As the Detax flag condition changes and the receipt items are reprocessed, the pricing will toggle to the appropriate method. Discounts will process forward from that state. After Discounts, when Detax flag is enabled:
When Detax flag is disabled: Items are posted with the full VAT price, tax included, iscounts are applied to the full VAT price and Taxed Active Price - Discounts = Taxed Receipt Priced |
Sample Detax preferences (Admin Console > Node Preferences > Taxes > General):
Select Detax Flag in Customer Record
1. Use Customer Lookup to find and display the customer's record.
2. Touch or click the Credit Detail Button.
3. Touch or click the Edit button.
4. Navigate to the Detax field. Select the check box to designate the customer as a Detax Customer. If selected, and "Zero out tax for Detax customers" is enabled in preferences, transactions listing the customer are eligible for detax.
5. Touch or click the Save button.
Manual Detax
Users with the required security permission can manually detax a transaction.
- Start a new transaction. Enter the customer and list the items being purchased.
- Touch or click the Transaction Details button.
- Select the Taxes tab.
- Touch or click the Detax button. The tax is removed from the transaction.
- Touch or click the OK button.
- To verify the detax amount, go back into Transaction Details, select the Taxes tab and scroll down to the Detax Amount field.
Checking Detax Amount on Transaction
To verify the amount of tax removed, go to Transaction Details and select the Taxes tab. Navigate to the bottom of the screen to the Detax Transaction area.
Removing Automatic Detax
If you need to remove an automatic detax, simply remove the customer from the transaction.
Detax Status of Returned Items
Prism tracks the detax status of individual transaction items. When returning an item that was detaxed, even if the detax customer is changed or removed, the item being returned will retain its orginal detax status. That is, tax was removed when the item was purchased (detaxed). It should not, therefore, be added just because it is being returned (regardless of who the customer is doing the returning). This prevents tax from being incorrectly applied to return items.