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Feature Request: Disabling Tax for Tax Exempt Customers

[The title of this thread has been edited from the original: ax Exempt Customers]

 

Many of my clients are tax exempt (schools and public libraries) and I need to create estimates and invoices without sales tax. These clients buy MANY items and I can't be deleting the sales tax manually for each individual item. I need to have the customer configured as tax exempt. Shopify gives me that option. Does Square allows it too and I just can't see it?

Thanks in advance!!!

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Message 1 of 18
1 Best Answer
Admin

Best Answer

Hi @OBRV! To remove taxes from the entire sale, you'll go through the following steps:

 

  1. Once an item(s) are added to a transaction, you will see a line item that says Tax
  2. Click Tax
  3. You'll see your taxes appear with red circles next to each tax. If you click on the red circles, it will remove the taxes from the sale.

Hope this helps!

Bea_
Beta Community Manager, Square
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Message 4 of 18
17 REPLIES 17
Super Seller

That is not currently an option, but you can just remove the tax from the entire sale rather than removing it from each individual item.

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Message 2 of 18
Beta Member

How do you remove the tax from the entire sale rather than item by item?

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Message 3 of 18
Admin

Best Answer

Hi @OBRV! To remove taxes from the entire sale, you'll go through the following steps:

 

  1. Once an item(s) are added to a transaction, you will see a line item that says Tax
  2. Click Tax
  3. You'll see your taxes appear with red circles next to each tax. If you click on the red circles, it will remove the taxes from the sale.

Hope this helps!

Bea_
Beta Community Manager, Square
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Message 4 of 18

If I remove the sales tax in this manner (for a tax exempt customer) does Square make an adjustment to my net sales total? 

 

When I file my state sales tax return each month, my state's online reporting system doesn't ask how much tax I collected. It asks for my total net sales, then it computes the tax I owe.

 

If Square isn't adjusting the net total, then my tax owed will not reflect the exemption. This means I'm still paying the tax for that sale, but now it's coming out of my pocket, because I didn't collect it from the customer.

 

This is a big problem, since my state (Oklahoma) gives sales tax exemption to all disabled veterans. That's a lot of my customers. 

 

Please reply to this quickly. I think this is costing me a lot of money!

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Message 5 of 18
Square Community Moderator

Hi @mikesclub!

 

Even if sales tax is removed, the sale will still be reported in net sales. 

 

As far as any tax issues go- it'd be best to consult with a tax professional on the best way to handle this is. 

Ashley C
Community Moderator, Square
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Message 6 of 18

Yes, I understand that the sale will still be reported in net sales (as it should be). 

But the sale price will be incorrect. If the tax is included in the $10 price, then the price isn’t really $10. It’s roughly $9.91. But Square is still reporting a $10 sale, and I will be required to remit sales tax, even though I didn’t collect any sales tax from the tax-exempt customer. 

Since Square gives me the ability to include tax in the price, I’m asking why it can’t report the correct sale price when I make a tax-exempt sale. I understand Square isn’t in the business of doing my taxes for me, but it does generate reports that I should be able to rely on when I pay my sales tax every month. As it stands now, whenever I make a single tax-exempt sale (I make several every month), I have to manually adjust the figures in the Square sales and tax report. 


Come on guys. All I’m asking for is accurate sales reporting when I use the features Square provides. 

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Message 7 of 18
Admin

Hey @mikesclub.

 

Thanks for your reply. 

 

I tested this on my end, and I see what your'e saying. I'm sorry we don't have a solution for this now, but I went ahead and moved this over to the Feature Requests section of the Seller Community for Product Team visibility. Thanks for surfacing this issue! 

 

Olive, she/her

Seller Community Manager, Square

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Message 8 of 18

Thanks so much. Didn’t mean to sound so irritated. 

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Message 9 of 18

Can this be done in the mobile version? 

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Message 10 of 18
Square Community Moderator

Hi there, @Porter4dmfd 👋 You can toggle on and off your Tax options for individual transactions on a mobile device. More on that here.

 

I hope that helps!

Joe
Community Moderator, Square
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Message 11 of 18

The ability to to assign a tax exempt status to a customer and then turn sales tax off for their purchases would be very beneficial. 

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Message 12 of 18
Square Community Moderator

@Porter4dmfd

 

We hear you and that's a feature request that's pretty popular. Right now assigning a tax exempt status to certain customers isn't available but I've merged you to a thread where we can easily update you when there's an update. Be sure to subscribe to the thread! 

 

 

Justin
Community Moderator, Square
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Message 13 of 18

Can you please add me to this thread so if Square adds this as a feature, I will be notified?!

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Message 14 of 18

Is there a way to charge custom shipping amounts to customers without the general sales tax getting applied to the shipping charge?

I work mainly with the mobile app and have been shipping products. I have my app setup to charge our state sales tax to the total.  Can we have an option to add a custom shipping amount that wont get taxed?

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Message 15 of 18
Admin

Hey @idahoclimber- Thanks for joining us in the Community!

 

You can follow my steps listed on the first page here. I walk through how you can remove tax from a sale. Once you've done that, you can add a custom amount to the sale and have that be your custom shipping amount. When you add it to the transaction, you can remove any taxes applied to it the same way you do in those steps listed.

 

Let us know if you have other questions!

 

 

Bea_
Beta Community Manager, Square
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Message 16 of 18
Beta Member

Hello,

We sell to non profits and wholesale to tax exempt clients.  We would like to make them automatically tax exempt easier on staff (we sometimes forget to change the tax toggle).  You have been able to group clients for automatic discounts which we love, so you are close.  Thank you,

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Message 17 of 18
Admin

@ehflower

 

Thanks for taking the time to post this. This is fairly popular feature request that is still being investigated so I've merged this to an existing thread so you can be notified when there's an update!

DannyH
Beta Specialist, Square
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Message 18 of 18