thread Re: Removing tax on Modifiers in Payments Troubleshooting

Remove Taxes on Modifiers for returnable containers

kbarralon — Sun, 21 Sep 2025 17:18:14 GMT

The title of this thread has been edited by a Square Moderator from the original: "Remove taxes on modifiers"

Hello!

Is there a way to remove taxes on modifiers?

I understand that taxes are applied on each line item. But this is not very accurate for all businesses, we should be able to exempt taxes for specific modifiers.

For instance, I use modifiers for returnable-containers in my business. You pay 1$ or 2$ (depending of what you choose) your container but we refund you 1$ or 2$ if you bring back your container. But with Square it adds the taxes on modifiers as well which is problematic in this case because returnable containers are not taxable.

Is there a workaround for that? Or maybe this can be a feature request?

Thanks

Removing tax on Modifiers

Steve-o_C — Wed, 16 Dec 2020 21:36:35 GMT

This reply was created from merging an existing thread: Removing tax on Modifiers

I've recently started setting up a Square website and terminal for our brewery retail, and all our beer sales need a 0.10c deposit with them. I've set up the beer items to have tax on them, however when I set up a modifier for can deposits, the modifier also has tax on it which is not what I want.

I've tried having the deposit as it's own item which works for our in-store sales, however when we get online orders many people aren't selecting the can deposit as well.

If there is a way to have tax options on modifiers this would be the perfect solution, but as far as I can see, no such option exists.

Re: Removing tax on Modifiers

Kassi_ — Mon, 11 May 2020 14:03:18 GMT

Hey @Steve-o_C -

Thank you for reaching out!

Just to make sure I am understanding correctly - you want to add a tax to the modifier on your beer items?

Taxes are applied to the entire item.

Re: Removing tax on Modifiers

CE1 — Thu, 14 May 2020 17:09:21 GMT

I too Have this issue and have requested an enhancement. I have an item that has tax that is often purchased with a non taxable item, without the non taxable item being a modifier-it is often a missed item because it needs to be purchased separately.

This is a huge customer issue.

I Agree, it would be awesome to have this !

Re: Removing tax on Modifiers

CE1 — Thu, 14 May 2020 17:10:40 GMT

It would be awesome to remove the taxes on the modifier. So the Main Item is taxable, but the Modifier is Not taxable.

That's what we need.

Re: Removing tax on Modifiers

CardinalAnna — Sat, 29 Aug 2020 02:27:46 GMT

I would also like to be able to charge a deposit on every can we sell. We need a way to charge the taxes on the beer and the 20c deposit as an extra. Has anyone figured this out without making the customer add the deposit to the online cart?

Re: Remove taxes on modifiers

Alex_ — Sun, 11 Oct 2020 20:24:15 GMT

Hello @kbarralon,

Thank you for posting in the Seller Community.

At the moment we do not have the ability to disable taxes at a modifier level. We definitely see how it could benefit your business model. Our teams are constantly looking through our seller's feedback to make necessary improvements, and we will be sure to let you know if anything ever changes or if new updates are released.

Re: Remove taxes on modifiers

cidreriecompton — Tue, 15 Dec 2020 18:07:07 GMT

+1 here, we need that option.

We always charge the bottle fee (no taxes on this fee) on every cider bottle sold. I would need to have a 1,50$ added with every bottle purchases with no taxes.

I don‘t see how to do that at the moment.

The modifier with no taxes would allow us to do that... although if it is directly added in the purchase basket (with no taxes) that would work for us as well.

Re: Removing tax on Modifiers

SeaCider — Tue, 05 Jan 2021 02:09:48 GMT

Echoing what everyone else in this thread is saying.

We are another company that needs to add a non-taxable bottle deposit to each bottle of cider we sell. Leaving this up to the customer to add in the online store is not a workable solution.

The ability to automatically add a non-taxable modifier (in this case a bottle deposit) to an otherwise taxable item, is a key missing feature for anyone in our situation (selling products in a returnable package like a can or bottle online). Please prioritize this as a feature to update!

Thanks,

Re: Remove taxes on modifiers

rosesnowdon — Thu, 04 Feb 2021 20:37:26 GMT

Echoing what everyone else in this thread is saying!

We are another company that needs to add a non-taxable bottle deposit to each bottle of wine we sell. We agree that leaving this up to the customer to add in the online store is not a workable solution.

If the modifier cannot be setup to be non-taxable, then there needs to be a way to automatically add a separate item (that is not taxed) to the on-line order when another item is added and prevent the user from removing from their order.

Otherwise, Square does not work well for anyone selling taxable products on-line that must collect a non-taxable bottle refund.

Re: Remove taxes on modifiers

RustysCanmore — Thu, 11 Feb 2021 20:25:05 GMT

Agreed, this is pivotal for a liquor store.
Each item will require a deposit (cans and bottles).

Each item might be a single can, 4 cans, 6, 8, 12, 15, 24

Bottles might be 1, 4, 6, 8, 12, 24

As well we have an enviro fee applied to certain items.

None of these are taxable items!

Re: Remove taxes on modifiers

PErspective — Tue, 23 Feb 2021 16:20:21 GMT

This is really a feature we need...

Re: Remove taxes on modifiers

CDawson — Thu, 08 Apr 2021 16:25:03 GMT

Has there been an update on this question?

Re: Remove taxes on modifiers

cidreriecompton — Thu, 08 Apr 2021 17:28:07 GMT

Is there a way to ask this echhancement to the Square team? There are quite a few people that need this now...

Re: Removing tax on Modifiers

MRKS2022 — Tue, 01 Mar 2022 15:08:17 GMT

Has anyone come up with another alternative?

Re: Remove taxes on modifiers

CaramelCrisp — Thu, 17 Mar 2022 15:36:14 GMT

I agree with the above requests with needing a modifier to be able to be not taxed. Our situation is also on a deposit but for a pie pan.

The other alternative would be to have an Item be a nested requirement to be selected with a parent item. Our customers order/purchase whole cheesecakes and pies. They may have it in a disposable pan or a glass or metal pan. The glass or metal pans need a deposit on them. So, when a customer orders the cheesecake, If the cheesecake item cannot have a modifier added that can be not taxed, then having a item for the pan deposit be a required item when the cheesecake is picked and have that item be not taxed would also work.

I hope that helps give a programmable option to these situations and get this resolved for us.

Thanks

Re: Remove taxes on modifiers

ATBBB — Wed, 13 Apr 2022 16:58:51 GMT

Very much needed. I'm trying to add 'Sponsorship' to let people help pay for events I'm entering (I'm a social enterprise).

Re: Remove taxes on modifiers

JJ_ — Fri, 15 Apr 2022 14:14:21 GMT

Thank you for taking the time to share your interest in this feature @ATBBB I recommend you submit a Feature Request here. This will help our product team get visibility and track other Sellers' interest in your request.

Important: When submitting a request, make sure to include the desired feature, and provide the details of how this feature will help your business succeed (how would you use it and what you expect from it).

P.S. Welcome to the Seller Community

Re: Remove taxes on modifiers

lacasabianca — Sat, 08 Apr 2023 22:59:56 GMT

It is now 2023, when will this option be available

Re: Remove taxes on modifiers

_Violet — Mon, 10 Apr 2023 21:50:19 GMT

Hi @lacasabianca - Thanks for following up on this thread.

I am currently reaching out to our Product Team for more insight on this. I'll be sure to come back here with an update once I receive more information. I appreciate your patience in the meantime 🙂