Is an online sale where no sales tax is collected treated by Square as a nontaxable sale?

[mikesclub]

When I remit my sales tax to my state every month, I refer to the sales tax report Square generates for me. The report tells me how much taxable and nontaxable sales I had for the month.

Now I'm starting to do online sales.

According to Square's support article entitled 'Manage Sales Tax Settings for Square Online Orders' https://squareup.com/help/us/en/article/6878-all-about-taxes-square-online-store it says:

I understand this. My question is: Will Square automatically record any online sale, where tax was not collected, as a nontaxable sale? 

I want to make sure I'm not remitting sales tax, that I didn't collect, to my state.

[RobynR]

Hey @mikesclub,

Thanks for being a member of the Community.

Since you have to select the Non-taxable item option when creating or editing an item, I would assume that items created do not automatically get reported as non-taxable.

To ensure I'm providing you with the most accurate information, I will escalate this to our Advanced Support team for further insight.

Once I have more information, I will reply back.

I appreciate your patience and time.

[RobynR · Accepted solution]

@mikesclub I reached out to our Reporting team, and they clarified that the “Nontaxable” figure on the page actually refers to all transactions where tax was not applied. This includes online sales where tax wasn't charged, regardless of whether the items are normally taxable but were exempt due to the buyer's location.

Let me know if you have any more questions or need further assistance!