---
title: How do tax groups (VAT) work in Favrit?
description: "Tax groups control two things for each product you sell: the VAT rate applied to the sale, and the account number used in your reports and accounting integration."
---

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July 7, 2026

# How do tax groups (VAT) work in Favrit?

## Tax groups control two things for each product you sell: the VAT rate applied to the sale, and the account number used in your reports and accounting integration.

**Need help deciding which VAT rates or account numbers to use?**   
Favrit Support cannot advise on this. Please consult your accountant or a tax adviser before configuring tax groups. [See our legal disclaimer on accounting advice](https://support.favrit.com/legal-discliamer-about-accounting-advise?hsLang=en).

### Prevent the most common accounting issues

Go to **Admin** **→** **Menu → Settings** and turn on **"Require tax group for products"**.

This ensures no product can be saved without a tax group, which prevents the most common VAT and accounting issues. We recommend doing this before you add products to your menu.

### ![require tax group](https://support.favrit.com/hs-fs/hubfs/require%20tax%20group.png?width=670&height=165&name=require%20tax%20group.png)

### What goes wrong without tax groups

#### **Sales routed to the wrong account**

If a product has no tax group, its sales are recorded under the **Default sales account** set up in your accounting integration. The sync may still run, but the data won't land in the correct accounts — your accountant will need to sort this out manually.

#### **Accounting integration failures**

Sync errors typically happen when a tax group exists but is misconfigured — for example, if the account number field is empty, or the account number doesn't match what's set up in your accounting system. A typical error message looks like: *"Account xxxx does not exist"*.

If your integration stops syncing, check your tax group setup first and make sure every tax group has valid account numbers filled in for both eat-in and take away.

#### **Incorrect account mapping**

Without a tax group, the product's sales are not mapped to an account number. This means they won't appear correctly in your accounting reports and may cause reconciliation issues.

### Default VAT rates (when no tax group is set)

If a product has no tax group, Favrit applies a default VAT rate based on the delivery point and country:

| **Delivery point** | **Norway** | **Sweden** | **United Kingdom** |
| --- | --- | --- | --- |
| Counter (ePOS only) | 25% | 12% | 20% |
| Table service |  |  |  |
| Pick-up point |  |  |  |
| Room service |  |  |  |
| Seat |  |  |  |
| Conference room |  |  |  |
| Takeaway | 15% |  |  |
| Delivery |  |  |  |

### Eat-in vs. takeaway — what determines the category?

Each tax group has separate VAT and account settings for eat-in and take away. Which applies depends on the delivery point:

| **Delivery point** | **Category** |
| --- | --- |
| Table service | Eat in |
| Pick-up point | Eat in |
| Room service | Eat in |
| Seat | Eat in |
| Conference room | Eat in |
| Takeaway | Takeaway |
| Delivery | Takeaway |

### Setting up tax groups

Go to **Admin → Menu → Tax Groups**.

You have two options to get started:

- **Add default tax groups** — creates a standard set of groups as a starting point.
- **Add new tax group** — creates a custom group from scratch.

For each group, enter:

- A **name** (e.g. "Food – eat-in", "Alcohol – take away")
- An **account number** and **VAT rate** for eat-in sales
- An **account number** and **VAT rate** for take away sales

![tax-groups](https://support.favrit.com/hs-fs/hubfs/tax-groups.png?width=670&height=350&name=tax-groups.png)

### Assigning tax groups to products

**Bulk assignment (recommended for large menus):**

1. Go to **Product list**.
2. Select all products you want to assign to the same tax group.
3. Click **Select tax group (VAT)** in the toolbar at the top.
4. Choose the tax group and confirm.

![apply-tax-product-list](https://support.favrit.com/hs-fs/hubfs/apply-tax-product-list.png?width=670&height=356&name=apply-tax-product-list.png)

**Per product:**

1. Open the product you want to edit.
2. In the **Basic Information** section, select a tax group from the tax group dropdown.
3. Click **Save**.

![apply-tax-product-single](https://support.favrit.com/hs-fs/hubfs/apply-tax-product-single.png?width=670&height=350&name=apply-tax-product-single.png)

### What if the wrong VAT was charged?

If a sale was completed with the wrong VAT rate, **Favrit cannot change it after the fact**. A receipt and report have already been created at the time of the sale.

Your options are:

- Contact your local tax authorities to understand your obligations and options.
- Depending on the situation, you may need to refund the original transactions and re-process them at the correct VAT rate.

The best prevention is to verify your tax group setup before you go live, and to run a test transaction if you are unsure.

### How tax groups appear in reports

- **Settlement report** — shows account number and VAT per product. If the same product was sold under different tax groups (e.g. both eat-in and take away), it appears as a separate line for each combination.
- **X/Z report and Daily Summary** — shows VAT breakdown per product.
- **Accounting report** — shows total gross sales per account number.

VAT is not applied to tips.

### Payouts and VAT

If Favrit or Adyen collected the payment, the **gross amount including VAT** is paid out to you. You are responsible for reporting and remitting VAT to the relevant tax authorities.

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