["sales tax limit","sales tax limit"]

[metaforge]

We live in a jurisdiction where there is a sales tax of 6%, but it is only applicable on the first $500 of any sale.  I can set up the 6% sales tax easily enough, but I don't see any way to add the $500 cap.

For example, on a $2000 sale, the tax should be 6% of $500, which is $30.  The remaining $1500 of the sale is tax free.

Any suggestions on whether this feature is available and how to use it?  The only work around I can think of for now would be to split it into two transactions, one at $500 with the tax, and then one at $1500 that I would explicitly have to mark as tax free.  Of course this creates all kinds of bookkeeping problems since it now looks like two sales.

Thanks for any advice.

[Joe]

HI @metaforge. Welcome to the Seller Community! So happy to have you here. You are already adding so much value - coming in hot with a great question right off the bat 😇

Applying a cap to tax-rated transactions is not something that is fully available with Square just yet. Your suggestion of splitting the sale into two transactions would definitely work - but you are correct in implying that more hassle is created due to now having two transactions in lieu of one.

A good workaround in this case would be to create a 6% tax rate and then manually apply it to a custom item price of $500. After the custom $500 rate has the 6% applied to it, you can then add more custom amount "items" for the remaining $1500 without manually applying any tax to this amount. This would keep your sales as one transaction instead of splitting it up into multiple. 

There are a lot of moving pieces here, so this process may be easier with this resource - I found it helpful when learning this trick as a Seller. 

Let me know if this works for you! I want to make sure you are taken care of. Look forward to hearing from you more!