# Tax Categories

Once you understand how taxes work in your area, you need to determine how taxes will be grouped for reporting purposes. Taxes are grouped together using Tax Categories in Veloce.  Every tax needs to belong to a tax category. Here are some common tax category examples:

* Federal Tax
* Provincial Tax
* State Tax
* Liquor Tax
* Food Tax

***

### Create Tax Categories

A maximum of 5 Tax Categories can be created in Veloce:

1. Login to the Veloce Back-Office.

![Veloce Back-Office Icon](https://documentation.payfacto.com/POS/Veloce/assets/images/VeloceCommon/Icon-VeloceBack-Office.png)

2. Start the Point of Sale Control module.

![Point of Sale Control Icon](https://documentation.payfacto.com/POS/Veloce/assets/images/VeloceCommon/Icons/Icon-PointOfSalesControl.png)

3. Click on the Invoice menu and select the Tax Categories... option.

![Invoice Menu - Tax Categories...](https://documentation.payfacto.com/POS/Veloce/assets/images/Chap05_PointOfSaleCtrl/Taxes/InvoiceMenu-TaxCategories.png)

4. The Tax Categories list appears. Click an existing category to modify it or click an empty placeholder to create a new one.

![Tax Categories List](https://documentation.payfacto.com/POS/Veloce/assets/images/Chap05_PointOfSaleCtrl/Taxes/TaxCategoriesList.png)

5. The Tax Category configuration screen appears.

![Tax Category - Configuration](https://documentation.payfacto.com/POS/Veloce/assets/images/Chap05_PointOfSaleCtrl/Taxes/TaxCategoryConfig.png)

#### Description

Type a meaningful name for this tax category. It will be displayed in tax reports.

#### Recording Module Level

This is used with the Québec Sales Recording Module only. Type 1 for Federal Tax and 2 for Provincial Tax.

#### Taxability mention representative letter

Used for VelPOS only - This is the letter that will appear next to each item that will identify which tax applies.

#### Include category by adding

You can group two categories together by enabling this option and selecting another tax category from the drop-down list.

![Button - Delete](https://documentation.payfacto.com/POS/Veloce/assets/images/VeloceCommon/Buttons/Button-Delete.png)

Click the Delete button to remove this Tax Category.

![Button - Save](https://documentation.payfacto.com/POS/Veloce/assets/images/VeloceCommon/Buttons/Button-Save.png)

Click the Save button to save changes and exit.

![Button - Exit](https://documentation.payfacto.com/POS/Veloce/assets/images/VeloceCommon/Buttons/Button-Exit.png)

Click the Exit button to close this window without saving changes.

Repeat these steps to create required categories.

{% hint style="info" %}
NOTE: You can create up to 5 Tax Categories in Veloce.
{% endhint %}


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