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Home>VAT

Create and Manage Your Tax Settings

With Square, you can create and manage taxes from the Square app and online Dashboard. Square’s fees are taken out of the total amount of each transaction, including tax and tip. 

To track your taxable and non-taxable sales, visit your online Square Dashboard.

Create Item Taxes Online

  1. Visit Account & Settings in your online Square Dashboard > Business information > VAT.

  2. Click Create a tax.

  3. Choose a location or locations to apply the tax to and click Done.

  4. Enter the tax name and rate and click All items to apply the tax to all items in your library or select specific items.

    Note: You can choose to Add Tax to Item Price, which adds the tax as a separate line item to the price or Include tax in item price, which shows one amount – the combined VAT and item price.

  5. Click Save.

You can also view your taxes from the item level:

  1. Visit Items in your online Square Dashboard.

  2. Click on an item to bring up the item details page. If taxes have been applied to an item, they will be listed under VAT.

  3. If there is no VAT applied, click Account & Settings > VAT to get started.

Note: Taxes will automatically apply to sales where a custom amount is entered. To disable taxes for custom amounts, visit your tax settings in the Square app.

Create Item Taxes from the App

With the Square app, you can create multiple tax rates and customise how tax is applied to your items. 

  1. Tap More to navigate to the menu.

  2. Tap Settings > Checkout > Tax

  3. On an iPhone, tap the + icon in the top-right corner. On an iPad, tap Add a New Tax, and on an Android device, tap Create Tax

  4. Enter the tax information and toggle on Enabled to automatically apply this tax at checkout. 

  5. Tap Applicable Items to choose which items this tax will automatically apply to. Toggle on Custom Amounts to apply this tax to amounts entered at the time of a sale.

  6. Tap the back arrow > Item Pricing. Select if this tax will be included in item prices or added to a price at the time of sale.

  7. Make sure to save your updates.

Edit Taxes at the Time of Sale

  1. From the Square app, tap Current Sale and tap an item.

  2. Under Taxes, toggle applicable tax rates on or off.

Note: From the Sale screen, you can also tap Tax to view all tax rates applied to the current sale. Tap the red minus icon to remove a tax rate from applicable items within the sale.

You can enable your employees to edit taxes at the time of a sale through your employee permissions.

Manage Taxes with the Catalogue Import Tool

Follow the steps outlined above in the Create Item VAT Online section to create the tax rate. Once you've completed this step, follow the below steps to apply the tax to your catalogue via the catalogue import.

  1. Once the tax rate is created, click Items > Actions > Export Library in your online Square Dashboard.

  2. Once exported, tax columns will appear at the end of the spreadsheet. From here, enter a Y or an N in each item row to apply, or not apply, the tax rate to the selected item in the catalogue.

  3. For large catalogues, items can be sorted by category, or a formula can be written to facilitate the bulk application of tax rates.

  4. Once tax rate(s) has been assigned to items within the spreadsheet, go back to Items > Actions > Import Catalogue > Modify Item Library to upload any changes.

Note: When editing any existing catalogue items from the spreadsheet, do not edit or remove the value in the Token column. Upon reimporting, the token is used to identify the existing item in the catalogue.

Disable Tax In-App

  1. Tap More to navigate to the menu.

  2. Tap Settings > Checkout > Tax and select the tax you’d like to remove.

  3. Toggle off Enabled or tap Remove Tax to delete it. 

  4. Save your changes.