Tax Exempt Sales

[ACAcatering]

I have a very specific issue that I hope has an easy solution.  I file my sales tax on a monthly basis.  We do a lot of tax exempt sales in multiple categories in our state (i.e.-wholesale, state, military, and religious) that all have to be separated out.  It would be nice to be able to have "Non-Taxable Sales" linked to said items.  Right now I have to go through invoices manually and hope that it all adds up.  To be able to see how "Non-Taxable Sales" numbers are achieved would be amazing.  

[VanKalkerFarms · Accepted solution]

I don't know if your invoices are mixed of taxable and non-taxable, but you could create a second location and mirror your items there with the exception that all sales at "location 2" are non-taxable sales.  that way all your reports and item sales would be separated and easy to account for.

or you could duplicate all the items and make one taxable and one non-taxable.

we separated our wholesale out from our retail into 2 separate locations to try and get the reports to be more accurate.  having an average ticket of $300 is good except not accurate when you take out wholesale and it drops to $80 and wholesale ticket average jumps to $700.  now the stats and reports are much more accurate.

[VanKalkerFarms · Accepted solution]

I don't know if your invoices are mixed of taxable and non-taxable, but you could create a second location and mirror your items there with the exception that all sales at "location 2" are non-taxable sales.  that way all your reports and item sales would be separated and easy to account for.

or you could duplicate all the items and make one taxable and one non-taxable.

we separated our wholesale out from our retail into 2 separate locations to try and get the reports to be more accurate.  having an average ticket of $300 is good except not accurate when you take out wholesale and it drops to $80 and wholesale ticket average jumps to $700.  now the stats and reports are much more accurate.

[ACAcatering]

My invoices aren't mixed.  My customers are either tax exempt or they aren't.  I like the thought, but I only use invoicing as we don't have a store front.  I don't believe there is a setting to determine from which location an invoice comes.  

[VanKalkerFarms]

there is an option from a dropdown on dashboard, or when in app it uses the location you are logged into.

[ACAcatering]

Awesome!  I'll give it a try.  Thanks for the help this morning.  My hope is that it is something they can still tweak, but this is a good work around for now.  Thanks again!

[stevetag]

However, if you just have the phone app, there is no way that I can find, to choose another location even if it is setup in your Dashboard.  Am I doing something wrong?

[Helen · Accepted solution]

Hey @stevetag! To choose another location you'll need to sign out of the app: Tap the three horizontal lines in the upper left > tap Settings > tap Sign Out.

When you sign back in you'll should see a list of your locations, and you can tap on a different location to take payments. 

[SycamoreWinery]

Were you able to find a good solution for this? We are struggling with this as well. We already have (3) locations, so creating a 4th is really not a good option for us as I need the sale to be reported with the correct location/business. 

Thank you!

[Bloomer2]

We would really love an answer to this issue! We also do a lot of tax exempt sales with state universities and such. 

[indianhillsok]

I also file our sales monthly and have some exempt status sales that I have found hard to figure out how to handle. I just setup a 3rd sales tax category in my square as "exempt". I have a few category sales that are entirely exempt that I will apply this to but my hope is that this will give us an easy way to identify specific sales through our register and cafe that are also exempt. I've been trying to figure out how to accommodate this for months now.

[nchadwick]

What square needs is a selection in the customer field where you can check tax exempt so when you ring them up it knows not to charge sales tax. This way, only the person in charge of collecting sales tax exempt certs can change that in the customer field and the employees do not have to ask. 

[sayra]

Hey @nchadwick - I moved your post to this board where other sellers ask a similar question. It includes some helpful links to our Support Center. Here you can also take a look at the steps on how to disable tax on a particular sale. 

Hope this helps although it may not be exactly what you are looking for.

[Paumanok]

What is needed is a way to generate a sales report that breaks down taxable and non-taxable sales. Should be straight forward to enable.

[AceOutdoors]

I'm running into this same issues and cannot find an answer. It's easy to turn off tax for a whole ticket for a tax exempt client, but at the end of the month when I print a monthly report, I'm not seeing "Tax exempt sales". Therefor, if I don't have a kept record elsewhere, I am paying sales tax to the state on all sales.

Have you found a solution?

[MayaP]

Hi @AceOutdoors,

Welcome to The Seller Community! Happy to help.

Our Tax Report on the dashboard shows taxable item sales and nontaxable items sales, https://squ.re/3xYkNeM .

The nontaxble items reflect tax exempt sales. 

That should work, if not please reach back out!

[bssherrie]

just setting up!  I am a florist-gifts, so i do a lot of exempt also.

I made a location for each exempt and location that i have been told they will show up on report as catergized

church-Mpls

church-LInds

Gov-Mpls

Gov-Linds 

sales MPLS

sales LInds

that way it will show the break downs

we'll see!

[Candlestore]

@ACAcatering and @bssherrie 

If you would go to your Reports on your Desktop then Select Reports again the Taxes all on the Left side... then you will see across the top Taxable Sales and Non Taxable sales with dollar amounts.  This will show what sales you collected Sales tax for and which ones you did not.  So Square uses Non Taxable Sales instead of Tax Exempt Sales. 

Now with the second location you would be able to see quickly how much was taxed and tax exempt. 

When I go through the Reports > Reports > Taxes    page my monthly owed to my state matches within $0.30 of what the state says I should owe on sales tax.  Then the state gives me a discount for paying early which covers the 30 cent difference easily. 

Link to the Taxes under Reports Reports--- dashboard/sales/reports/taxes 

[chuck902]

We need a way to mark a customer as Tax Exempt. I know we can remove the tax when creating the sale, but sometimes staff forgets when we're busy.

This is a basic function. Our antique POS system we moved from had this ability.

Surely any shop that sells physical products has tax exempt customers. Churches, Schools, Government, Not for profits.

Please add this option!