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Square Online Tax Settings

DISCLAIMER: Tax compliance is your responsibility. We do not guarantee the applicability or accuracy of our tax tools. If you have any questions about your tax obligations, you should consult a professional tax advisor.

To set up taxes for Square Online:

  1. Open the Square Online Overview page.

  2. Select Settings < Taxes.

Taxes for online sales can be tricky since you may receive orders from many locations. The tax settings for your online store make it easy to set up and manage sales tax, but you’ll need to add the tax rates manually.

Square Online now supports charging price inclusive of tax in the United Kingdom, United States and Canada. When taxes are set to be inclusive, the price of each item sold on your site will already include the tax.

sos-us-inclusive-tax

Above is an example of what your customers will see when they purchase from a site with price inclusive taxes enabled. In this case, the customer is purchasing an item for $1 from a seller with an 8% price inclusive value-added tax (VAT) enabled.

  • Subtotal: This line item represents the sum price of all items in the order, and it includes any price inclusive of taxes

  • Tax: This line item breaks out the taxes from the subtotal so that the customer can see the exact tax amount paid

  • Total: This line item is the total cost of the order, including the subtotal and any additional fees (such as delivery) that are applied.

Note: the separate ‘Tax’ line item is not summed as taxes are already included in the subtotal.

Item-level Taxes

You can use the item-level tax rates in your online Square Dashboard for collection, local delivery and self-serve orders. Orders delivered by courier use the tax rates set in the Square Online Overview page settings. To turn on item-level taxes:

  1. Open the Square Online Overview page.

  2. Select Shared Settings > VAT.

  3. Under Order-level taxes, toggle on item-level taxes for collection, local delivery and self-serve or all three. 

  4. Click the Go To Item Taxes button to view item-level taxes in the online Square Dashboard.

Customers who received an item-level tax rate on an order can view a calculation of their taxes during checkout, displayed by tax name. If a customer selects collection or delivery for an item that does not have an item-level tax rate, no tax will be applied to the purchase. Tax exempt items in Square only apply to Square Online collection, local delivery or self-serve orders. Dispatched orders will use the tax rates set in the Square Online Overview pagesettings