Disclaimer: Treez Support can explain how tax configurations work within the Treez platform, but cannot create, edit, or manage tax settings on your behalf. Customers are responsible for ensuring their tax configurations are accurate and compliant with applicable tax laws. Treez is not liable for tax calculations, filings, penalties, or compliance issues. For guidance beyond this documentation, consult a qualified CPA or tax professional.
Overview
Once tax rates and custom taxes are set up, the next step is configuring how those taxes are applied at checkout. In Treez, this is done by adding taxes to layers in the POS Tax Setup section.
This article explains how to create tax layers, add taxes to each layer, and control how taxes compound for medical and adult-use customers.
Before continuing, we recommend reviewing How Taxes Work in Treez for an overview of layers, compounding, and tax subtypes.
Accessing POS Tax Setup
To configure tax layers, navigate to: Configurations > Config Page > Taxes
Scroll to the Point of Sale Tax Setup section.
If your state supports both medical and adult-use customers, you will see separate tabs for each customer type. Taxes must be configured independently for each tab.
To learn more about when both tabs are required, see Medical vs Adult-Use Tax Configuration.
Understanding the POS Tax Setup Area
The POS Tax Setup area allows you to:
Create tax layers
Add one or more taxes to each layer
Control whether taxes compound
Apply different tax structures by customer type
Taxes are calculated from top to bottom, starting with the first layer.
Editing Tax Layers
To begin editing:
Select the appropriate customer type tab (Medical or Adult-Use)
Click Edit
Edit mode allows you to add, remove, and reorder tax layers.
Creating a Tax Layer
Tax layers define how taxes interact with one another.
To create a new layer:
Click the add layer icon
Enter a descriptive name for the layer
Save the layer
Layer names are internal only and are meant to help you identify the purpose of each layer.
Examples:
Primary Cannabis Taxes
Local Taxes
Sales Tax
For examples of common layer structures, see Common Tax Configuration Patterns.
Adding Taxes to a Layer
Once a layer is created, you can add taxes to it.
To add a tax:
Click Add Tax within the desired layer
Select a Tax Label
Choose the Applies To setting
Confirm the Rate
Each tax added to a layer must have all three fields completed to calculate correctly.
If you have not yet created the tax label you need, see Setting Up Tax Rates and Custom Taxes.
Tax Label
The Tax Label determines the behavior of the tax, such as whether it is a sales tax, excise tax, or custom tax.
Important rules:
Each tax label can only be used once per customer type
The same label cannot be reused across multiple layers within the same customer type.
Applies To
The Applies To field determines which products the tax is calculated on.
Options include:
Cannabis products only
Non-cannabis products only
All products
This setting is evaluated before tax calculation begins.
To understand how product subtypes affect tax calculation, see How Taxes Work in Treez.
Rate
The Rate field reflects the percentage or value used to calculate the tax.
Depending on the tax label:
The rate may auto-populate
The rate may be editable
The rate may reference a configured tax rate
Rates cannot be edited directly from POS Tax Setup if they are automated.
For help updating rates, see Setting Up Tax Rates and Custom Taxes.
Compounding Behavior
Compounding is controlled by layer order, not by individual tax settings.
Key rules:
Taxes in the same layer do not compound with each other
Taxes in lower layers compound on the totals from layers above
Reordering layers changes how taxes are calculated.
For a refresher on compounding behavior, see How Taxes Work in Treez.
Configuring Multiple Layers
Many tax structures require more than one layer.
Common examples:
Cannabis excise taxes in the first layer
Local taxes in a secondary layer
Sales tax in the final layer
Each additional layer compounds on the layer above it.
For real-world examples, see Common Tax Configuration Patterns.
Saving Your Changes
After configuring all required layers:
Review each layer for accuracy
Confirm Applies To and rate values
Click Save
Changes take effect immediately for new transactions.
Repeat this process for the other customer type tab, if applicable.
Common Mistakes to Avoid
Adding the same tax label more than once
Placing compounding taxes in the same layer
Forgetting to configure both customer types
Assuming rates entered elsewhere automatically apply without adding the tax to a layer
What This Article Does Not Cover
This article does not explain:
How to create tax rates or custom taxes
State-specific tax requirements
Product modeling for tax compliance
Pricing behavior such as post-tax pricing
For those topics, see:
Next Steps
Once your tax layers are configured, review your setup using real-world examples to ensure accuracy.
Continue with: