thread Can Square compute sales tax in Archived Discussions (Read Only)

Can Square compute sales tax

Trebore06 — Thu, 30 Jun 2022 15:42:21 GMT

I sell online to customers in many different states. Can Square calculate sales taxes by customer location?

Re: Can Square compute sales tax

HC_Charlie — Thu, 30 Jun 2022 17:17:07 GMT

Hello @Trebore06 thanks for your question. Yes, Square can automatically calculate and add the sales tax to your sales. See this post about how to setup your tax details. Once you have your sales tax rates setup, when you add inventory items you specify whether that item is taxed, or non-taxable.

Just note that you will still be responsible for filing reports and remitting Sales Tax payments to your local and/or state taxing authority. (Square collect the sales tax and passes those funds off in your deposits for you to pay yourself.)

Re: Can Square compute sales tax

Trebore06 — Thu, 30 Jun 2022 19:09:27 GMT

Thank you, very helpful advice. After spending 45 minutes with SQUARE support, I now understand that I need to set up sales tax rates for every state since I sell to customers in every state. Still not sure how SQ relates the customer to the sales tax table i created. My next issue pertains to the Reseller channel. I do not charge sales tax to resellers. How would I differentiate between a no tax from a tax sale?

Re: Can Square compute sales tax

BernadetteA — Fri, 01 Jul 2022 18:35:52 GMT

Hi @Trebore06

Are all of your sales made through a Square Online website?

If you are using Square Online, you have the option to use the Automatic Tax Calculator. You just need to enable it from the Square Online dashboard under Settings > Taxes. Please note: the automatic tax calculator is only going to charge tax to online sales made in the same state where you have a nexus (business presence, like an office or warehouse).

Do you have different items setup to sell to resellers? If so, you can mark an item as tax exempt, however, you would want to check with a tax advisor to make sure you do not need to add sales tax for an online sale.