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Use Conditional Sales Tax Rules with the Square App

Whether your customers are eating in or taking away, you can apply conditional tax accurately and automatically with the Square app on an iOS or Android device. Customise your tax settings from your online Square Dashboard so they work in tandem with your existing Dining Options

Manage Tax Rules Online

Set Up Tax Rules

Before getting started, make sure you complete the following:

Create Tax Rules to omit taxes based on your Dining Options and Items. To apply Tax Rules correctly at checkout, update the Square Point of Sale app on your iOS or Android devices. 

  1. From your online Square Dashboard, click Items > Sales taxes.

  2. Click Create a Tax Rule.

  3. Enter a rule name > click Select Tax to choose tax(es) to omit from this rule. 

  4. Click Select Locations to select locations where the tax rule will apply.

  5. Click Select Dining Options > choose the dining option* that will trigger this tax rule.

  6. Click Assign Items to select items that will have taxes omitted.

  7. Click Save

* To customise your dining options, save changes and navigate to Items > Settings > Dining Options to edit, add or remove.

Edit Tax Rules

  1. From your online Square Dashboard, navigate to Items > Taxes.

  2. Click the tax rule you’d like to modify to edit the rule.

  3. Click Save.

Tips for Using Tax Rules

  • Conditional tax rules allow you to preset conditions where VAT won’t be applied. During setup, make sure to select items that won’t have VAT applied when a specific dining option is used. For example, let’s say ‘dine in’ coffee should have VAT, but coffee for ‘take away’ shouldn’t. You’ll want to create a tax rule that removes VAT when the ‘dine in’ option is applied, and then add the coffee item to the rule.

  • Similar to dining options, conditional taxes can be applied to all items in the cart, or to individual items. Dining options and tax rules work together, so a tax rule will apply to a sale based on how the linked dining option is applied to the sale (either to the entire basket or to a specific item). Learn more about applying dining options from the Square app.

  • A tax rule can’t be applied to a basket total – only to the items in the basket.

  • Tax rules aren’t compatible with item modifiers

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