Tax will be applied according to local liquor/non-alcoholic/merchandise/shipping tax rates and based on Wholesale orders versus Counter Buyer orders.
How to Set the Tax Type for Products
When you add a product you can set the tax type in the Details tab.

Select the appropriate tax type from the drop-down box. Options include:
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Liquor
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Merchandise
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Soda
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Non-alcoholic
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Shipping
Press save.
When an order is created, appropriate taxes will be applied based on the product type and the customer type.
Tax Schemes FAQ
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Can I change the tax scheme on a product after it is created?
Yes, to edit the tax scheme, go Product > Details then select the appropriate tax scheme from the tax type drop-down box and then save.
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Why is there an option for Soda and Non-Alcoholic products?
Non-alcoholic products are defined as dealcoholized beers, sparkling wines and ciders, that contain 1% or less alcohol by volume (and are not considered sodas for tax purposes)
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Where can I see a breakdown of the tax applied to each line item in an order?
A full tax breakdown is available on the Sales Detail Report.