> ## Documentation Index > Fetch the complete documentation index at: https://docs.ofatoura.com/llms.txt > Use this file to discover all available pages before exploring further. # Setting Up Taxes > Create and manage taxes in oFatoura, choose order-level or item-level tax mode, set tax-inclusive or tax-exclusive pricing, and assign taxes to menu items. Taxes control how much is added to (or already included in) every bill your restaurant produces. You configure them once in the web admin, and the rest of the system — the POS, splits, receipts, and reports — uses those rules automatically. This page covers creating and editing taxes, choosing between order-level and item-level tax modes, switching between tax-inclusive and tax-exclusive pricing, and assigning taxes to individual menu items when you use item-level mode. **Permissions:** Only staff with the Manage Settings permission can open and change Tax Settings. Everyone else simply sees the resulting tax amounts on orders and receipts. ## Where to find it In the web admin, go to **Settings > Tax Settings**. From here you can add taxes, pick a tax mode, turn tax-inclusive pricing on or off, and (in item-level mode) assign taxes to menu items. ## Creating and editing taxes Each tax is a named charge — for example a sales tax, VAT, or service tax — with a value that applies to orders or items depending on your chosen mode. Go to **Settings > Tax Settings**. Create a new tax and give it a clear **name** (the name customers may see on receipts) and a **value**. You can set the value as a percentage or as a fixed amount. Save the tax. It immediately becomes available for new orders according to your current tax mode. To change a tax later, edit its name or value. To remove one, delete it. New tax settings apply to orders created after the change — they do not rewrite bills that were already calculated. Use plain, recognizable names like "VAT 5%" or "Service Tax" so the charge is obvious to both staff and customers on the printed receipt. ## Choosing a tax mode Tax mode decides **what** your taxes apply to. You pick one mode for the whole restaurant using the tax mode option in Tax Settings. Taxes are applied to the order total as a whole. This is the simplest setup and works well when every item is taxed the same way. Each menu item can have its own tax (or no tax). Use this when different items are taxed differently — for example food versus packaged goods, or taxed versus exempt items. ### Switching modes safely Before you change tax mode, oFatoura runs a **compatibility check**. This confirms your current taxes and item assignments can move cleanly to the new mode so totals stay correct. Always let the compatibility check finish before confirming a mode switch. Changing from order-level to item-level (or back) affects how every new order is taxed, so review the check's result first. Switching modes does not change orders that are already billed or paid. ## Tax-inclusive vs tax-exclusive pricing Separately from the mode, you decide whether your menu prices **already include** tax or have tax **added on top**. Use the tax-inclusive toggle in Tax Settings. | Setting | What it means | What the customer sees | | ------------------------------ | ---------------------------------------------------------------------------- | ------------------------------------------------------------------------------ | | **Tax-exclusive** (toggle off) | Menu prices are pre-tax. Tax is calculated and added on top of the subtotal. | A subtotal, then a separate tax line, then a higher total. | | **Tax-inclusive** (toggle on) | Menu prices already contain the tax. | The price they expected; tax is shown as the portion already inside the total. | Pick the option that matches how you advertise prices. Many regions expect menu prices to already include tax (inclusive), while others list prices before tax (exclusive). This choice affects how the POS displays the breakdown but the price the customer pays for an inclusive-priced item stays the same. ## Assigning taxes to items (item-level mode) When you switch to item-level mode, an **item-tax matrix** appears so you can control which taxes apply to which menu items. Select item-level tax mode and let the compatibility check confirm the switch. Use the menu item search to locate the dish or product you want to configure. In the matrix, tick the tax (or taxes) that should apply to that item. Leave an item unticked if it should not be taxed. Work through your items, then save. The POS will tax each item using the taxes you assigned. The matrix lines up menu items against your available taxes, so you can quickly see and adjust exactly which items carry each tax. Search for a specific item rather than scrolling when your menu is large. ## How tax mode affects the POS, splits, and reports * **POS totals:** In order-level mode, taxes are calculated against the whole order. In item-level mode, the POS adds up the tax for each item based on its assignments. Tax-inclusive pricing changes how the breakdown is shown but reflects the same prices you set. * **Splitting bills:** When a check is split, each portion carries the correct share of tax, calculated from the same rules you set here — so the parts always add back up to the full taxed total. * **Reports:** Your tax configuration feeds the tax reporting in the dashboard, so the amounts you collect are summarized for you. See [Tax, Discount, and Promotion Reports](/reports/tax-discounts-promotions) for the breakdown. ## Related Set currency, timezone, and custom tax fields used on receipts. Configure how orders are numbered and which order types you offer. Build the items that item-level taxes attach to. Review the tax you have collected across your orders.