# Taxes & service charges

> Define tax rates, assign them to branches by channel, and add automatic service charges.

Source: https://sofra.tablixai.com/docs/taxes-charges

Section: Set up your restaurant

Sofra computes tax and service charge for every order automatically from the rules you set. Rules can differ by branch and by order channel.

> **Available on Basic and above:** The Taxes, Discounts, Coupons, Service Charges and Payment Methods settings are available from Basic.

## Tax definitions

Go to **Settings → Taxes** and choose **Add Tax**. Each definition has:

| Field | Options |
|---|---|
| Name | For example VAT, GST, Delivery fee. |
| Rate and type | Percentage (%) or a fixed amount. |
| Category | Tax (VAT, GST), Service charge, or Fee (such as a delivery fee). |
| Applies to | Per order, per item or both. |
| Description | Optional. |

_Screenshot: Global tax definitions._

## Assigning taxes to a branch

A tax only applies once it is assigned to a branch. Select the branch, open **Settings → Taxes** (or the branch’s **Tax rules** page) and choose **Add Tax Rule**. Pick the tax and **Applies to**: all channels, dine-in only, takeaway only or delivery only. Rules can be enabled or disabled without deleting them.

> **Fallback when no rules exist:** If a branch has no tax rules, Sofra falls back to the **tax rate** and **service charge rate** in the branch settings (and then the restaurant defaults).

## How an order total is calculated

1. **Subtotal.** Sum of (item price + modifier prices) × quantity.
2. **Discounts and coupon.** The order discount is taken off first, then the coupon is applied to what remains.
3. **Taxable base.** Subtotal minus discounts and coupon.
4. **Taxes.** Each tax rule for the branch and channel is applied to the taxable base. Percentage rules multiply; fixed rules add a flat amount.
5. **Service charges.** Automatic service charges matching the channel and minimum order are added.
6. **Fees and tip.** Delivery fee, packaging fee, tip and any additional charges are added.
7. **Total.** Taxable base + taxes + service charge + delivery fee + packaging fee + tip + additional charges.

The POS shows these figures live as you build an order, before it is saved.

## Service charges

Go to **Settings → Service Charges** and choose **Add Charge**.

| Field | Options |
|---|---|
| Name | For example Service 10%. |
| Type and value | Percentage or fixed amount. |
| Applies to | All order types, dine-in only, takeaway only, delivery only, online only or counter only. |
| Minimum order amount | Only triggers when the subtotal reaches this amount. |
| Application | **Automatic** (added to every matching order) or **Manual** (a cashier applies it). |
| Branch | A specific branch or all branches. |

> **Note:** If you define service charges here, they take over from any service charge defined as a tax rule, so a guest is not charged twice.