# Tax Overview
> Source: https://development.fuze-store.com/docs/store/tax/overview

# Tax Overview

Your POS system handles tax calculations automatically. Once you set up your tax rates, every sale applies the correct amount without any manual math.

## What Is a Tax?

A **tax** is an extra charge added to the price of your products or services. Governments typically require it. Common examples include VAT, sales tax, and service tax.

When you create a tax in Fuze Store, the system adds it to each qualifying sale for you.

## Why Set Up Taxes?

- **Stay compliant** with local and national tax laws.
- **Save time** by letting the system calculate amounts.
- **Show clear receipts** so customers see exactly what they pay.
- **Simplify reporting** when it is time to file or audit.

## How Taxes Work in Your POS

- **Automatic calculation** -- taxes apply to sales based on your settings.
- **Flexible setup** -- create different rates for different products, services, or locations.
- **Tax exemptions** -- remove or adjust tax for specific customers or situations.
- **Transparent receipts** -- every receipt breaks down the tax amount.

## Field Explanations

When you create or edit a tax, the **Country** and **Currency** fields are auto-populated from your store settings. You do not need to enter them manually.

You fill in the following fields:

| Field | Description | Required | Possible Values | Example |
| --- | --- | --- | --- | --- |
| **Name** | The tax name shown on receipts | Yes | Any text | VAT |
| **Rate** | The value added to the price | Yes | Any number | 12 |
| **Rate Type** | How the tax is calculated | Yes | Fixed, Percentage | Percentage |
| **Description** | A short explanation of the tax | No | Any text | Value Added Tax |

## Tips

- Verify your local tax rates and rules before creating a tax.
- Use clear names so your staff and customers understand each tax.
- Consult your accountant or local tax office if you are unsure about rates.
- You can update or remove taxes at any time as laws change.

## Best Practices

- Review your tax settings regularly, especially after price changes.
- Train staff on how taxes appear on receipts and how to handle exemptions.
- Keep tax reports on file for easy access during audits.