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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 VAT in your online Square Dashboard.

  2. Click Create Tax.

  3. Enter the tax information and make sure to toggle Enable Tax on. 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.

  4. Select the applicable locations.

  5. Click Save

  6. Apply the tax to your items > Apply to Items.

  7. Select individual items or click Select All > Apply to Items.

You can also adjust 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. Under Taxes > No Taxes or select the name you gave your tax.

  3. Enable tax rate(s) you’d like to apply.

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.

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.

Rule Based Taxes

With Rule Based Taxes, you can set up tax rules to automatically exclude taxes for purchases that are applicable to your region. For example, if your state exempts buyers from VAT on purchases of $110 or less, you can create a Rule Based Tax to automatically exclude the VAT associated with the appropriate items.

Create a Rule Based Tax Online

  1. Visit Account & Settingsin your online Square Dashboard > Business > 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. Toggle Add exemption rule on.

  6. Select If item price is below amount, If total price is below amount, or If dining option used and input the amount or dining option, as well as the applicable item(s) or categories associated with the tax. Note: You can also choose to toggle Apply exemption to custom amounts on or off.

  7. Click Save.

Edit an Existing Rule Based Tax Online

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

  2. Select a tax to open the Edit Tax screen. From here, you can make the appropriate edits.

Once you finish making the edits, click Save.

Disable or Delete an Existing Rule Based Tax

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

  2. Select a tax to open the Edit Tax screen.

  3. Toggle Enable Tax off to disable the tax or click Delete to delete the tax.

If you’ve opted to disable the tax, click Save.