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Use Conditional Sales Tax Rules with the Square App

Whether your customers are dining in or taking their order to go, you can apply conditional sales tax accurately and automatically with the Square app on an iOS or Android device. Customize 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 to complete the following:

Then, follow these steps:

  1. From your online Square Dashboard, click Create a Tax Rule.
  2. Give your new rule a name > click Select Tax to choose tax(es) to omit from this rule. 
  3. Click Select Dining Options > choose the dining option that will trigger this tax rule.
  4. Click Assign Items to select items that will have taxes omitted.

Edit Tax Rules

  1. From your online Square Dashboard, visit Taxes.
  2. Click the tax rule you’d like to modify > edit the rule > Save.

Tips for Using Tax Rules

  • Conditional tax rules allow you to preset conditions where taxes won’t be applied. During setup, make sure to select items that won’t have tax applied when a specific dining option is used. For example, let’s say coffee “for here” should be taxed, but coffee “to go” shouldn’t be. You’ll want to create a tax rule that removes sales tax when the “to go” dining 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 sale based on how the linked dining option is applied to the sale (either to the entire cart or to a specific item). Learn more about applying dining options from the Square app.
  • A tax rule can’t be applied to a cart total – only to the items in the cart.
  • Tax rules aren’t compatible with item modifiers.
Learn more about: Point of Sale

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