thread How can I charge order level taxes while excluding HST exclusively for my online food items? in Online Store

How can I charge order level taxes while excluding HST exclusively for my online food items?

igorramade — Fri, 07 Feb 2025 01:33:47 GMT

The title of this thread has been edited from the original: Hst - taxes on delivery.

Hello,
With this new HST Holiday Exemption, we have to disable the hst on food items, however the delivery service that we use still charge us hst and we will also need to charge the customer hst.

On Order level tax settings, I already selected to charge taxes on delivery fees but still shows as zero during the checkout.

Subtotal $36.00

Delivery $10.00

Service charge $1.16

Estimated taxes (ON, ON) $0.00 (this should be 13% of $10 delivery, $1.30)

Tip $0.00

Estimated order total $47.16

Thanks for any help.

Re: Hst - taxes on delivery

TheLittlestGift — Tue, 24 Dec 2024 19:09:05 GMT

I'm also having issues with this. I think the work around is to disable the taxes on the item level instead of the website level. I think they recently added a feature to do this BUT you have to do the items individually..... I tried to export the item list hoping there is a field that I can input "NO" or "OFF" for taxes but there isn't one either.

Re: Hst - taxes on delivery

Katie_SQ — Fri, 07 Feb 2025 01:32:01 GMT

Hi @TheLittlestGift @igorramade,

Sorry for the delay getting back to you here.

Order level tax settings require an associated item-level tax enabled in order to function. To address this issue, you would need to have Order level tax settings enabled within your Square Online settings, and also enable the HST tax for all items by navigating to Account & Settings > Settings > Payments > Sales Taxes. Then, disable the HST tax at the item level specifically for your food items.

There are some limitations to consider with this. If your order includes taxable (non-food) items, the order level tax will be charged. However, if your order consists solely of non-taxable food items, the order level tax will not apply, since no item-level tax is enabled. If your online orders are often food-only, you might consider adjusting your pricing to account for this tax instead.

Hope this clarifies things! If you have any further questions, please feel free to ask.