thread Re: VAT Rates in Payments Troubleshooting

VAT Rates

CoffeeCorner123 — Sun, 21 Sep 2025 12:24:38 GMT

How to set up VAT correctly?

I have the VAT set up and it works correctly on my POS. We are a cafe - everything is 20% VAT when dining-in the cafe, but some items are 0% if taking away.

I have set this up using the tax level exception and works fine on the POS.

However, we also sell items on our website - but it automatically makes everything 20% rated - How can I get the website to use the same rules for tax so that it classes website pickup or delivery as the same as takeaway and zero-rates some items (some will still need to be 20%).

Thanks!!

Re: VAT Rates

Twiggy — Tue, 26 Nov 2024 14:04:34 GMT

I’m not experienced with food - side of Square but listening in to meetings etc @Sam_400º has a wealth of knowledge and experience with F&B and was a pilot/first to try out kiosk and many other features - not sure about the VAT threshold side as all our product is VAT rated - I know there have been feature requests in the past relating to this sort of thing. @Breffni ????

Re: VAT Rates

Breffni — Wed, 27 Nov 2024 10:44:42 GMT

Hi @CoffeeCorner123 👋 thanks for your post and @Twiggy for your help!

Tax settings from Square Point of Sale do not sync to Square Online.

Order level VAT rates are applied to online orders by default, but you can choose to override them by applying item level VAT rates for pickup, delivery and QR code orders. These are the same VAT rates used for Point of Sale purchases. To turn on item-level VAT for Square Online:

from your Square Online Overview page, go to Settings > VAT or Shared Settings > VAT.
Under ‘Item level VAT rates’, toggle on item level VAT for pickup, delivery or QR code orders.
Select Manage item level VAT to view item level VAT from your Account & Settings page.

Let me know if this works for you - we have more details on applying VAT for online items available in our support centre here.