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How to remove tax on a Sale where tax is included in the item price?

How can you remove the TAX for transactions where the SET PRICE of the item includes the TAX?

 

WE are having an issue with reducing the price for guests that are tax exempt.    

 

The reason we use the PRICE includes tax is because we are rounding everything to the nearest 1/4 dollar.

 

any help would be appreciated. Think this may be a SQUARE PROGRAMIING ISSUE.

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Best Answer

It's really pretty simple to do what you want. Basically you'll set up a discount for 10.75% and apply that to the entire ticket, which is how discounts work in Square.

 

From your PC Dashboard, navigate > Items > Discounts. Here you'll create your discount: Click on Create a Discount, then give it a name (Tax-free or whatever you want), then enter 10.75 and make sure the % button is enabled.  When ringing up a tax-free customer, click on Discounts, then click on the tax-free discount and Square will do the rest.

Judy T Shumway

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27 REPLIES 27

How you got this 10.75% discount when the original poster didn't mention what their sales tax is?

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Square Community Moderator

Welcome back to the Community, @flyleaf_bakery

 

Discounts would work differently than the sales tax. Could you give me some more information on what you're looking for?

 

I will keep an eye out for your reply👀

Kassi
Community Moderator, Square
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I am trying to "include tax with item price" but the tax keeps showing up in addition to the item price. 

My item is $25, which should be the total the customer sees, however the checkout cart says $25 plus $2.47 for taxes.

Please help.

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Square Community Moderator

Hi @Tonya3, thanks for reaching out with your question.

You can choose to add tax to your item price or include tax in your item price when setting up your sales tax. This can be edited at any time by navigating to your Account & Settings in your online Square Dashboard > Business > Sales Taxes.

I've included a screenshot below of where to find this setting in your Dashboard. 

 


 

Laurie
Community Moderator, Australia, Square
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When I worked in retail there was a "tax shift" button.

If an item was non-taxable but was in a category that is automatically taxed, one would ring the price, then enter the "tax shift" (tax exemption for that item), then category.

A tax shift key would be ideal for me, but I haven't figured out how to do it yet.

All the discounting stuff doesn't play well. Your customer pays the correct amount but the system will back-tax the item leaving you a sales tax burden. You can adjust the math for your dollars and cents, but you need to include the sales tax expense you'll pay later. That's too messy for me.

 

Scott O'Connor

Parsons Farm

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Square Community Moderator

Hey @Mortys,

 

Thanks for being a member of the Community.

 

You can turn off a tax in two ways so it will no longer apply to any purchases. You can temporarily disable a tax and re-enable it later or permanently delete a tax. Both can be done in the Point of Sale app and online Dashboard. 

 

Here's an article on how to Manage Your Sales Tax Settings.

 

Let me know if this is what you are looking for. 

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Square keeps replying with the same solution, to turn off the tax button, but that is at the item level.  This is a useful option, but unwieldy when a sale calls for a simple tax exempt to apply to the entire transaction. 

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