thread Re: How to apply discount to non-taxable items only in Archived Discussions (Read Only)

How to apply discount to non-taxable items only?

RockinGood — Thu, 09 Apr 2020 20:40:41 GMT

Tax calculated with mix of service (non-taxable), product, and discount came out wrong.
The bill was: $95 (service) + $8.49 (product) - $31 (discount on the Service).
Tax 6% on $8.49 should have been $0.51.
Total should have been $73, but Square came up with $72.85.
Please explain how the discount is applied, since it affected the tax.

Please also tell me if there is a way I can apply discounts strictly against service, so they don't affect tax on products.

Re: How to apply discount to non-taxable items only

RHatch — Thu, 16 Nov 2017 18:04:55 GMT

Sounds like you took the discount on the total sale. What you want to do is take the discount on the item. Once you have the item selected. Click on it and it will pop up a window that will allow you to adjust qty, tax, not and apply a discount just to that item. Note that only %off discounts will show up.

Re: How to apply discount to non-taxable items only

RockinGood — Thu, 16 Nov 2017 18:18:24 GMT

Thanks. Yes, I saw an answer like this on another post, but I never saw the option to apply discount when I clicked the item. Must be the % vs. $ discount thing, because I'm offering a $ discount. Thanks for clarifying that.

Any other thoughts about how to get the tax right, when I offer a mix of taxable, non-taxable, and $ discount?

Re: How to apply discount to non-taxable items only

RHatch — Thu, 16 Nov 2017 19:29:45 GMT

Other than changing your discount from $ to % no. However, does it really matter if it takes if off one or the other? You only pay sales tax on the subtotal of the item after discounts. As far as reporting your sales tax you are fine, it's just not the way you have been doing it.