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How taxes apply at checkout

Where each line's tax rate comes from, how composite rates and discounts affect the maths, and how tax appears on the receipt.

Updated Aug 14, 2026

Tax is applied automatically: every service and product line picks up its tax rate the moment it's added to the cart, from the rates configured under Settings → Tax rates. Nothing is typed at the till — if a sale's tax looks wrong, the fix is in settings, not at checkout.

Where does each line's tax rate come from?

Line typeRate used
ServiceThe service's own tax rate if set, else the Default service tax
ProductThe Default product tax
PackageThe package's own rate if set, else the default service tax — packages are prepaid services
Gift cardNo tax — tax is charged when the card is spent, not when it's bought
Membership, tip, service chargeNo tax

Rates are named, and a rate can be composite — several components (say GST + PST) whose percentages add up to the rate charged. Prices in Owneli are tax-exclusive: tax is added on top and shown as its own line, never buried in the price.

Discounts change the tax

Tax is calculated on the discounted amount, at both line and cart level — discount first, then tax. A comped line carries no tax. See Apply a discount or deal.

What you see at the till and on the receipt

  • The checkout summary shows one Tax row. On a mixed cart — some lines taxed, some not — an "On …" note names exactly which lines the tax applies to, so a part-taxed total never looks like an error.
  • The receipt breaks tax out per rate, with composite rates expanded into their components — the split you need for remittance.
The rate is stamped onto the line when it's added and snapshotted on the completed sale — changing a tax rate in settings affects future sales, and history keeps the tax that was actually charged.

Common questions

Why is one line on the sale not taxed?

It's a line type that doesn't carry tax (gift card, membership, tip, service charge), or its service resolves to a "No tax" rate. The summary's "On …" note lists what is taxed.

Can I change the tax on a single sale at the register?

No — there's no per-sale tax override at the POS. Tax follows the item's configured rate; fix the service's rate or the defaults under Settings → Tax rates.

How do I charge two taxes, like GST and QST?

Create one composite rate with both as components. The till charges the sum; the receipt and reports show the per-component split.

Is tax charged on a gift card purchase?

No. The card is stored value — tax applies later, on the items it's redeemed against. That's also why gift cards are excluded from cart discounts.

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