thread Re: charging tax when using a gift certificate in Orders, Menu Items, Catalog & Fulfilment

Charging tax when using a gift certificate

wkurtin — Sat, 20 Sep 2025 11:56:23 GMT

When applying a gift certificate to a purchase, how do I set up the Square terminal to charge sales tax on the whole amount, prior to applying the certificate?

Re: charging tax when using a gift certificate

JustinC — Wed, 18 Nov 2020 17:42:21 GMT

By gift certificate, do you mean a promo code/discount? If so, tax is calculated based on the total after a discount is applied, not before.

@wkurtin

Re: charging tax when using a gift certificate

wkurtin — Wed, 18 Nov 2020 20:21:36 GMT

No this is a paper certificate worth a certain amount that is to be applied to the sale, but only after the sales tax is figured based on the whole amount. It would be equivalent for example to buying an item that costs $40 and paying $20 in cash and charging the rest.

Re: charging tax when using a gift certificate

JustinC — Thu, 19 Nov 2020 15:20:00 GMT

Okay - Square doesn't offer paper gift certificates, so I'm assuming you're redeeming the certificates in the form of a discount or a split payment ($20 cash, $20 Other gift card/certificate which simply records the payment in your records).

I suggest the latter - split payment - so tax will apply to the whole sale amount and not the adjusted price after the certificate is applied.

@wkurtin

Re: charging tax when using a gift certificate

wkurtin — Wed, 18 Nov 2020 21:24:10 GMT

Ok thank you. I will try that.

Re: charging tax when using a gift certificate

KelseyRWC — Thu, 14 Jul 2022 18:24:28 GMT

Answer found.