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Online sales tax being charged on non-taxable items
Hey there. I run a bakery and most of my items (like bread) are not taxable in New York State. We sell in-store and online. There used to be separate tax controls for the items in Square online, but since Square Online items merged with Square Dashboard items, that no longer seems to be the case. I created a new bread yesterday, set it to non-taxable in Square dashboard, and taxes are not being charged in-store. However, when people purchase the item online, they are being charged sales tax per my website default, I guess.
Breads and other items that existed before the merge/migration a few months ago have a seperate toggle in their dashboard entry that says ECOM Non-Taxable, and it's toggled on. I do not see that option for the new items I have just created.
We've already had a customer request a refund for the sales tax she paid on bread yesterday. I would like to correct this as soon as possible, obviously! Am I missing something? Does anyone know where the online item-level tax controls live now? This article seems to be outdated because I don't have anything like "item-level tax rates" this in my account settings ... I'm simply taken to the Square dashboard tax page. Please help!
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Hey there, @KingstonBread. I’m going to assume here that your sales tax calculations are ALWAYS the same whether orders are placed in person or online. If that is not the case sometimes, let me know. Otherwise….
From your online dashboard main menu, go to Online > Shared Settings > Sales Taxes. There, you will see Item Level Tax Rates. In my case, I have pickup and QR code orders toggled on, and delivery orders toggled off since I don’t offer delivery.
Set your as need be and from now on your POS sales tax rules become the master for your online sales, as well.
Let me know if you need anything else.
If my answer resolves your issue, please take a minute to mark it as Best Answer. That helps people who find this thread in the future.
Piper’s Ice Cream Bar, Covington KY USA
Website
Click here to see a list of third-party apps I use to add functionality to my Square account!
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