Sales Tax Included on all donation transactions. What do we do now?
We had an event Friday night and just discovered that sales tax was turned on for two of our “donation” items...resulting in over $2,500 in sales tax fees across over 100 different transactions. What are our options to fix this issue?
at this point your options are limited since it didn't get caught that tax was being added on the first couple of transactions.
you will have to go thru each transaction and do a pratial refund equal to the amount of sales tax charged. this will take some time but will make each donation right. you can do it from the Square online dashboard or from the Square POS app. https://squareup.com/help/us/en/article/6116-process-refunds. Make sure you are not refunding the entire amount as that will refund the entire donation and you will not be able to charge it again without finding the original customer that donated.
to assure that this doesn't happen next time check your items in your Square dashboard to make sure that tax is turned off on the items you don't want taxed. https://squareup.com/dashboard/items/library
