I have helped set up square accounts for two separate non-tax sellers. A local religious group who accepts donations and gets reimbursed for items such as t-shirts and swag they produce to help raise money for their events.
I've also guided a friend through creating an account as a wholesale coffee supplier.
Both of these groups have tax free status on the items they sell. They did not create a "TAXES" item in their account settings for these items. In one instance some sales did need to be taxed requiring one active item in their Taxes settings. In this case the seller simply toggled OFF the Sales Tax option when creating the item being sold.
Take care of yourself and, as life provides, someone else too.
