Tax Rates

REV23 charges tax by the rates you define at Settings → Sales & Payments → Tax Rates (managed with Sales Settings → Manage) — nothing is taxed until a rate says so, and services aren’t taxable by default. If your studio doesn’t collect sales tax, skip the page entirely — REV23 asks about tax setup once and drops it when you decline.

Multiple rates stack: a state rate plus a city rate each compute independently on the same base, which is how layered US jurisdictions actually work.

What a rate is

A name (it lands on reports, so “AZ TPT” beats “Tax 2”), a percentage, and three choices:

• Location — one location or All locations. Both kinds apply together, so a statewide rate and a city rate for one shop coexist cleanly.
• Tax calculation — After discount (the default: tax on what the customer actually pays) or Before discount. Mandatory surcharges on a line are always in the base either way; a discount only reduces it in After-discount mode. Tips are never taxed.
• Rounding — round half up, or banker’s rounding for shops whose accountant asks for it.

What a rate applies to

Each rate checks off what it covers:

• Services — the work itself. Whether a given service is taxable at all comes from its service type’s pricing; labor is untaxed in most US states, which is why the default is off at the service-type level.
• Products & retail jewelry — goods sold over the counter, including jewelry bought without an installation.
• Installed jewelry — the piece that goes in during a piercing, taxed separately from the service. Off by default, on only if your state requires it. This flag is per-rate, so one jurisdiction can tax installed jewelry while another doesn’t.

Gift cards and deposits are never taxed — they’re stored value, taxed when spent.

Jewelry provided with services

Some studios include the piece in the service price, ringing the jewelry at $0. States generally still want use tax on those transfers, so the Sales Tax report carries a disclosure section for $0-installed jewelry with real catalog value: what was given, why it rang at zero (tier-covered, baseline, or no reason recorded), and its catalog retail value. The report counts; your accountant decides — including translating retail value into a cost basis where the state assesses use tax on cost.

The register keeps that section honest with a quiet Check price flag on any $0 jewelry line that has no explanation — no discount, no tier, no baseline coverage. Usually it’s a price nobody typed. The flag never blocks the sale and never prints on receipts.