In Toast Web, you can configure a modifier option's underlying item reference to use one of the following tax behaviors:
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Inherit item tax rate: The modifier is taxed at the same rate as the parent menu item. For example, if the menu item is taxed at 6.25%, then the modifier option is also taxed at the 6.25% rate. This is the default behavior.
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Unique tax rate applied to modifiers: The modifier option is configured with a tax rate that is different from the parent menu item and is applied separately from the menu item tax rate. For example, a menu item is taxed at a 6.25% rate and the modifier option is taxed at a 2.75% rate.
If the menu item has multiple modifier options, each modifier option may have its own unique tax rate. For example, a pizza menu item is taxed at 6.25%, a pineapple modifier option has a unique tax rate of 4.25%, and a pepperoni modifier option has a unique tax rate of 3.50%.
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Modifier tax rate overrides item tax rate: The modifier option has a different tax rate than its parent menu item and the modifier option tax rate overrides the menu item tax rate. This means that both the menu item and the modifier option are taxed at the rate configured for the modifier option. For example, if the menu item is configured for a 6.25% tax rate and the modifier option is configured for a 2.75% tax rate, when that modifier option is applied to the menu item, both are taxed at the 2.75% tax rate. Note that the menu item's tax rate is overridden only if the modifier option is added to the menu item on a Toast POS device. The modifier option may be available to apply to the menu item, but if it is not added to the menu item on an order, then the menu item's tax rate is not overridden.
Also, if more than one modifier option that is configured to override the menu item's tax rates is added to a menu item, the Toast platform defaults to using the menu item's tax rate and ignores all of the modifier option tax rates.
These three settings are represented by the
modifierOptionTaxInfo value of the
ModifierOption object that is returned by the
/menus endpoint of the menus API. You can use the
modifierOptionTaxInfo value in conjunction with the
taxInfo value on a MenuItem object to
determine the tax on menu items and the modifier options that are
applied to them when an order is placed on the Toast platform.
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Note |
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For detailed instructions for configuring the tax behavior of a modifier option's item reference in Toast Web, see Taxes on modifiers. |
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Note |
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The |
To understand how to calculate menu item and modifier option
taxes, consider the following example of three modifier options that
apply to the same menu item but use different tax behavior
configurations. To begin, we need to know the tax rate assigned to the
menu item, which is specified in the menu item's taxInfo
value. The Cheese Pizza menu item below uses the tax rate identified by
the GUID 1a2b:
"menuItems": [
{
"name": "Cheese Pizza",
...
"taxInfo": [
"1a2b"
],
...
},
...
]Modifier Option 1, shown below, is configured in Toast Web to
inherit its tax rate from a parent menu item. As such, its
taxRateGuids value contains the same tax rate GUID as
Cheese Pizza (1a2b) and its
overrideItemTaxRates value is set to false.
With this scenario, you would use the taxInfo value in the
MenuItem object (1a2b) to determine the tax
rate for Cheese Pizza and the taxRateGuids value in the
ModifierOptionTaxInfo object (also 1a2b) to
determine the tax rate for Modifier Option 1.
Modifier Option 1 inherits the parent menu item's tax rate
"modifierOptionReferences": {
"7": {
"referenceId": 7,
"name": "Modifier Option 1",
...
"modifierOptionTaxInfo": [
"taxRateGuids": ["1a2b"],
"overrideItemTaxRates": false
],
...
},
...
},Modifier Option 2 is configured to use its own unique tax rate.
Its taxRateGuids value contains the tax rate GUID from its
underlying modifier option item reference (3c4d) and its
overrideItemTaxRates value is set to false.
With this scenario, you use the taxInfo value in the
MenuItem object (1a2b) to determine the tax
rate for Cheese Pizza and the taxRateGuids value in the
ModifierOptionTaxInfo object (3c4d) to
determine the tax rate for Modifier Option 2.
Modifier Option 2 has its own unique tax rate
"modifierOptionReferences": {
"9": {
"referenceId": 9,
"name": "Modifier Option 2",
...
"modifierOptionTaxInfo": [
"taxRateGuids": ["3c4d"],
"overrideItemTaxRates": false
],
...
},
...
},Modifier Option 3 is configured so that its tax rate overrides the
parent menu item's tax rate. Its taxRateGuids value
contains the tax rate GUID from its underlying modifier option item
reference (3c4d) and its overrideItemTaxRates
value is set to true. When Modifier Option 3 is applied to
Cheese Pizza in an order, the taxInfo value in the
MenuItem object for Cheese Pizza (1a2b) should
be overridden by the taxRateGuids value in the
ModifierOptionTaxInfo object for Modifier Option 3
(3c4d). This means your integration should use the
3c4d tax rate for both Cheese Pizza and Modifier Option
3.
Modifier Option 3's tax rate overrides the parent menu item's tax rate
"modifierOptionReferences": {
"12": {
"referenceId": 12,
"name": "Modifier Option 3",
...
"modifierOptionTaxInfo": [
"taxRateGuids": ["3c4d"],
"overrideItemTaxRates": true
],
...
},
...
},|
Important |
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It is not shown in the examples in this section but the
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There are other tax-related features that can impact the tax of
a modifier option, such as tax inclusion and smart tax, that
are not returned in the
ModifierOptionTaxInfo object. More information on these
features and their impact on modifier option taxes is provided in
Tax functionality interaction.