Who is this for?
StoreHub merchants in the Philippines who operate businesses that provide entertainment or amusement services (e.g., cinemas, karaoke, theme parks) and need to correctly apply Amusement Tax to their sales.
Overview
This guide shows you how to set up, apply, and manage the Amusement Tax for your business in the Philippines using your StoreHub BackOffice and POS system. You'll learn how to create a custom Amusement Tax rate, apply it to your products, and understand how it appears on receipts and interacts with special discounts.
Before You Begin
Access to your StoreHub BackOffice.
Stable internet connection for your BackOffice and POS devices.
Your current Amusement Tax rate as determined by your Local Government Unit (LGU). This rate can vary by location, so always confirm the latest rate for your area.
Step-by-Step Guide
Understanding Amusement Tax
Amusement Tax is a government-mandated tax applied to businesses that provide entertainment or amusement services, such as cinemas, theme parks, concerts, or karaoke venues. This tax is set by your local government (LGU) and is classified as VAT-Exempt under the Local Government Code.
StoreHub allows you to set a custom Amusement Tax rate because, even though it's VAT-exempt, it's still a tax you need to collect and pay to the government.
Add a New Amusement Tax Code
Follow these steps to create a new Amusement Tax code in your BackOffice.
2. On the 'Tax Codes' page, click the 'Add Tax Code' button.
3. On the 'Add Tax Code' page, select the 'Amusement Tax' checkbox.
This action will automatically activate the 'VAT-Exemption' setting and name the tax code 'Amusement Tax'.
4. Enter the specific tax rate (e.g., '10' for 10%) in the 'Tax Rate' field.
5. Click 'Save' to create your new Amusement Tax code.
Notes:
If only the VAT-Exemption checkbox is selected, the Tax Rate field will automatically be set to 0 and will disable any further input.
If multiple Amusement Tax Codes are created (e.g., for products across different store locations), the subsequent codes will automatically be labeled as "Amusement Tax 2," "Amusement Tax 3," and so on. However, in the Receipt and the Z-Reading Report, only the generic label "Amusement Tax" will be displayed.
Edit an Existing Amusement Tax Code
If your LGU changes the Amusement Tax rate, you'll need to update it in your BackOffice.
1. In your BackOffice, go to the 'Settings' drop-down menu, then click on 'Tax'.
2. On the 'Tax Codes' page, find the 'Amusement Tax' code you wish to edit and click on the 'Edit' button.
3. Update the 'Tax Rate' field with the new percentage.
4. Click 'Save' to apply the changes.
Delete an Existing Amusement Tax Code
If you no longer need to charge Amusement Tax, you can delete the tax code.
1. In your BackOffice, go to the 'Settings' drop-down menu, then click on 'Tax'.
2. On the 'Tax Codes' page, find the 'Amusement Tax' code you wish to delete.
3. Click the 'Delete' button next to the 'Amusement Tax' code.
4. Confirm the deletion when prompted.
Note:
Deleting a tax code will remove it from all products it was previously applied to. Ensure this is your intention before proceeding.
Apply Amusement Tax to Products
After creating the Amusement Tax code, you need to assign it to the specific products or services that are subject to this tax.
1. In your BackOffice, go to 'Products'.
2. On the 'Product' page, select the product you want to apply the Amusement Tax to.
3. On the product's details page, find the 'Tax' section.
4. From the tax dropdown menu, select the 'Amusement Tax' rate you created.
5. Click 'Save' to apply the tax to the product.
How Amusement Tax Appears on POS and Receipts
Once set up, the Amusement Tax will be automatically calculated and displayed during transactions.
1. On Your POS Register
When you add a product with Amusement Tax to the cart, the tax will be applied. The total tax amount in your transaction summary will be displayed as a single section, combining all applicable taxes (including Amusement Tax).
2. On Printed Receipts
Your printed transaction receipt (including the Half Receipt) will include a detailed breakdown of all taxes charged, clearly showing the Amusement Tax amount.
3. For Tax Audit Purposes
The 'Z-Reading Report' (End of Day Report) will display the Amusement Tax amounts charged for each business day, along with the total number of transactions completed that day. This helps with your daily reconciliation and tax reporting.
Note:
If a transaction includes two different amusement tax rates, the total amusement tax will be consolidated under a single "Amusement Tax" entry on both the receipt and the Z-Reading report.
Understanding Amusement Tax Calculation
Here’s an example of how Amusement Tax is calculated for a product:
Scenario: Karaoke Ticket Purchase
Ticket price: 1,000 PHP (This is the base price, which is VAT-exempt.)
Amusement Tax (10%): 100 PHP (10% of 1,000 PHP)
Total Payable: 1,100 PHP
Information displayed on receipts:
Amusement Tax (10%): 100 PHP
VAT-Exempt Sales: 1,000 PHP
The system first identifies the ticket price as VAT-exempt. Then, it calculates the 10% Amusement Tax based on that price, adding it to the total.
Amusement Tax and Special Discount Policy
The StoreHub system does not allow you to combine special discounts with products that have Amusement Tax in the same transaction. This is to ensure accurate tax calculation and compliance with tax regulations.
Scenario 1: Adding Special Discount to a Cart with Amusement Tax
Condition:
Your customer's cart already contains a product with Amusement Tax.
You try to apply a special discount (e.g., Senior Citizen, PWD discount).
Result:
A pop-up error will appear with the message: "Cannot apply special discount while a product with Amusement Tax is in the cart."
Scenario 2: Applying Special Discount and then Adding Product with Amusement Tax
Condition:
Your customer's cart already has a special discount applied.
You try to add a product that has Amusement Tax.
Result:
A pop-up error will appear with the message: "Cannot add product with Amusement Tax while a special discount is applied."
Troubleshooting
Issue | Solution |
Cannot apply special discount with Amusement Tax product in cart. |
|
Cannot add Amusement Tax product to a cart with a special discount already applied. |
|
The Amusement Tax rate is incorrect or not appearing on products. |
|
I don't know my LGU's current Amusement Tax rate. |
|
FAQs
1. What is Amusement Tax?
Amusement Tax is a local government tax applied to businesses that provide entertainment or amusement services, like cinemas or theme parks, in the Philippines.
2. Which types of businesses need to charge Amusement Tax?
Businesses engaged in amusement-related activities, such as theaters, event organizers, and amusement parks, are required to charge and pay this tax to the government.
3. Why can't I combine Amusement Tax products with special discounts in the same transaction?
The StoreHub system prevents combining them to ensure accurate tax calculations and compliance with tax regulations, as special discounts can complicate how Amusement Tax is applied.
4. Is Amusement Tax subject to VAT?
No, Amusement Tax is classified as VAT-exempt sales under the Local Government Code in the Philippines.
5. How do I find the correct Amusement Tax rate for my area?
You must confirm the latest rate directly with your Local Government Unit (LGU) or consult a local tax professional, as rates can vary by location.
Need Help?
Contact StoreHub Support via live chat in your StoreHub app or email [email protected].
Was this article helpful?
Let us know below or contact support for further assistance.