> For the complete documentation index, see [llms.txt](https://docs.rmhpos.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.rmhpos.com/store-manager/configure-pos-and-store-manager/store-financials/setting-up-sales-tax-rules.md). # Sales tax rules 1. Click **File** | **Configuration**. 2. Click the **Sales Tax** tab. 3. Select tax rules for the store, e.g., method of taxation, which item tax to apply to new items, and how to identify the applicable item tax when shipping items to a different tax jurisdiction.

Option	Field	Description
Method of Taxation	Tax-Exclusive (United States, Canada)	The tax exclusive system is primarily used in the United States. The price shown on the price tag or shelf tag is the price before (excluding) tax. The tax is calculated and added to the transaction total when the item is sold. Select this option if your store is located in the United States, or in a region where a tax exclusive system is used.
	Value Added Tax (VAT) or Tax-Inclusive (Europe)	Many countries use a VAT or tax inclusive system. The price shown on the price tag or shelf tag is the price including tax. Select this option if your store is located in a region where VAT or a tax inclusive system is used.
	VAT Reg. No.	If your store is located in a region where VAT is used, enter your businesses VAT registration number. This number is printed on receipts and tax reports.
	VAT Detail ID
Tax Schedule Basis	Select the local tax (identified in the Item tax field) to apply to any newly created items	Select an item tax from this drop-down if you want to automatically assign it to any newly created items. This is typically the item tax that applies to items purchased in the store.
	If shipping to the customer, select the value (e.g. Ship to state\ city\ country\ ZIP) to use to determine the local tax at the destination (on a per customer basis)	If the store ships items to customers, select a value from this field to enable POS to automatically apply the item tax in the jurisdiction where the customer is receiving the items. The item tax will be determined the customer's shipping address, not their billing address. Refer to Shipping items to customers for more information.

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