Where does the money I’m charging for tax go?

[KineticTCE]

Hi All, I do charge sales tax for all of my sales but when I look at my sales breakdown it separates the tax. Is Square taking that money or are we getting that money?

[MichiganFarmsta · Accepted solution]

Sales tax is added on to the sale.  Then you receive the total amount collected which includes that tax.  It is up to you to pay your state the amount. 

[andyseous]

it seems they take fees out of the taxes as well which i think thats fraud

[homeprogreen]

Yes the processing fees are based on the total amount of the sale which includes any taxes that apply to the sale. No it’s not fraud. As a seller you need to ensure that you are setting your margins to cover your costs including processing fees to ensure that you remain profitable