GeoTax is an inclusive tax type that allows users to apply an inclusive tax rate to a defined geo-fence. This option is only available for TPI (Tax Per Item) venues and iOS GPS enabled devices.
How GeoTax Works
- When items are added to the cart, within Activate, the app calls out and records the device's GPS location.
- The GPS location coordinates are then associated with the order.
- The coordinates and check information is then passed to Connect.
- If the vendor/menu items have a GeoTax rate associated, Connect looks at the GPS coordinates associated with the order and checks to see if the coordinates match any of the GeoTax Rates.
- If the order coordinates match a GeoTax GeoFence, the inclusive tax associated to the GeoTax will then be applied to the order.
- Completed Orders within Connect will display the captured coordinates in the Order Details.
- If an order's coordinates fall outside the GeoTax GeoFence, it will default to Geo Tax Not Found.
- Users with the appropriate Connect Role configuration will be able to edit the Geo Tax Not Found tax rate and assign the correct tax rate with the Order Details.
How GeoTax Rates Behave within Tax Groups
Tax Groups that have GeoTax Rates assigned to them will only apply Rates that match the order/check's GPS Coordinates. Regular (Inclusive) Taxes within a tax group are still applied as normal.
Example Tax Group: Canada
- Ontario (Geo) (5%)
- Yukon (Geo) (10%)
- Quebec (Geo) (7%)
- Federal Rate (Non-Geo) (5%)
If an Order/Check has GPS coordinates that match the Yukon GeoTax Rate GeoFence, only the Yukon GeoTax rate is applied. The Federal Rate is a regular inclusive tax of 5% and will also be applied.
Total Tax Applied: = Yukon (Geo) (10%) + Federal Rate (Non-Geo) (5%) = 15%
In order for Activate to send Connect the GPS coordinates, the Permissions Sets associated with the Activate account's Employee Role must have the Send Order Location toggle set to Yes on the Payments tab.
The Vendor that is processing the transaction must have GeoTax enabled on the assigned Vendor Role on the General tab.
For instructions on creating a Tax Rate, reference Tax Per Item: Tax Rates and Tax Groups.
- Fill in the ancillary Tax Rate information but make sure the following configurations are set properly
- Tax Type = Active
- Status = Active
- GeoTax = Active
- Once GeoTax is set to Active, additional options will appear.
- The data area only accepts GeoJson formatted coordinates.
- Users can copy and paste the GeoJson data or upload a GeoJson file.
- To configure a JSON, please visist https://tools.ietf.org/html/rfc7946
- To view an example JSON file, please see the attached example_yukon_polygon.json.
- Once the data has been uploaded or pasted into the data field, click on the Import geoJson Format button.
- Once the file is imported a Google map will appear that displays the Geofence coordinates.