Learn how to set tax rates and limits in Dutchie POS.

Dutchie does not provide tax advice. Merchants using Dutchie products should determine their tax responsibilities by utilizing their own tax advisors. Dutchie provides tools that calculate taxes in many optional configurations. Dutchie does not and cannot ensure that tax calculations in Dutchie products are correctly configured. Configuring taxes is exclusively the responsibility of the merchant.

From Taxes & compliance you can configure tax categories, tax rates, and purchase limits based on customer type, product type, and other criteria according to your local regulations.

Tax categories

Tax categories are used to broadly classify products that are subject to different tax rates (such as cannabis and non-cannabis) and are different from product categories, which are used for more specific classifications such as flower, concentrates, edibles, etc.

To create or modify tax categories:

  1. Go to Settings > Taxes & compliance and select the Taxes tab.
  2. Click Add category or select an existing category to edit it.
  3. Enter a descriptive Name.
  4. Click Save.

The tax category you just created can now be assigned to tax rates and product categories. Or, you can assign a tax category to specific products in your Catalog, which will override the tax categories assigned to its product category.

Once tax categories are set, you can run the Product Applied Tax Category report in Reports > Inventory to see which products are in which category. Export the report to a CSV and then filter the Tax Category Applied column to show the category you want to see.

Columns with blanks represent product with no Tax category applied. To apply a tax category for these products, navigate to Products > Catalog > Locate Products > Tax Category > select desired tax Category > Save. To delete a tax category, click the trash icon next to it.

Tax rates

To create or modify tax rates:

  1. Go to Settings > Taxes & compliance and select the Taxes tab.
  2. Click the Add rate or click an existing tax rate to modify it.
  3. Fill out the following fields as necessary, then click Save.

Field Description

Rate name Give the rate a descriptive name.
Rate type Choose from:
Rate unit Only applicable if you selected Rate type: Flat (per item). Choose the unit that the flat amount applies to. 
Rate amount

Enter a percentage or dollar amount, depending on the Rate type you selected.

Percentages should be entered in decimal form. For example, enter a 6% tax as 0.06.
Arm's length Choose yes or no. Used in California for certain types of licenses.
Customer types

Choose whether the tax applies to all customer types or select customer types.

If the tax rate differs by customer type, use the fields next to each customer type to specify different percentages. Your entries here will override your entry in the Rate amount field. Leave these fields blank to use the same value from the Rate amount field.

Configure your customer types by going to Customers > Actions > Manage customer types.
Tax categories

Choose whether the tax applies to all tax categories or select tax categories.

If the tax rate differs by tax category, use the fields next to each category to specify different rates. Your entries here will override your entry in the Rate amount field. Leave these fields blank to use the same value from the Rate amount field.
Zones

In some regions, different taxes apply based on the delivery destination.

Configure your delivery zones by going to Delivery > Configure > Zones.
Apply markup rate Is a markup rate needed? Used in California.
Apply to cost Do you want the tax to apply to the unit (wholesale) cost entered in Inventory?
Stacks on other rates Does the tax stack on other tax rates? Learn more about setting up stacking taxes.
Gross tax Are you taxing customers on pre-discount sales? Calculates tax before discounts are applied. Check the Tax configurations by navigating to Settings > Taxes & Compliance > Taxes > Select Tax Rate > Gross Tax > if "No" Taxes will calculate post discount, if "Yes" Taxes will calculate pre-discount.
Is excise tax Does your local tax authority define this as an excise tax? Used in California.
Tax type

Select the appropriate type (City, County, Excise, or Sales) to report taxes collected under this rate to Metrc.

Select None if you are not integrated with Metrc or are not required to report this tax data to Metrc.

 

Purchase limits

Purchase limits are used to determine and enforce the maximum amount of each product category or combination of categories a customer can purchase. Work with your onboarding partner or customer support to ensure your purchase limits are set in compliance with your state’s specific regulations.

Purchase limits are not enforced by default, but you can enable a setting that prevents checkout at the point of sale when a customer's cart exceeds the limit(s) you've configured.

  1. Go to Settings > Location > Options.
  2. Check the box for Enforce Purchase Limits.
  3. Click Save.

To create or modify purchase limits:

  1. Go to Settings > Taxes & compliance and select the Purchase limits tab.
  2. Click the Add limit button.
  3. Fill out the following fields as necessary, and click Save.
Field Description
Customer type What customer type(s) does this limit apply to? Configure your customer types by going to Customers > Actions > Manage customer types.
Category

What purchase limit category or categories does this limit apply to?

Be sure your product categories are also associated with the correct purchase limit category. To view or edit product categories, go to Products > Configure > Categories, select a product category, and confirm or edit the Purchase limit category drop-down menu.
Purchase limit Enter the purchase limit in grams.
Limit type Per Purchase, Per Calendar Day, Per Calendar Month, or Cycle
Cycle days Only applies if the Limit type is Cycle. Number of days in the cycle. Cycle limits will start when a customer makes their first purchase and reset at the end of the period.

 

What’s next?