Inappropriate sales tax on top of service charge

[Meg5]

We have added a service charge on all transactions.  Square is inappropriately calculating sales tax on the service charge.

In our state, products incur a sales tax but services do not.  The service charge is clearly a service so should not be taxed.

Example:

Service $250.00

Tip $50.00

Service Charge $15.00 (5% on total sale)

Sales Tax $0.90 - Should not be on the transaction

How do we eliminate the sales tax which is being tacked on top of the service charge?

[alexandriak]

Did you add this charge as an item in your dashboard? If so you can go to your library, edit the item, and turn the sales tax off.

[_Violet]

Hi @Meg5- Thanks for reaching out to us with your question. I see this is your first post in the Seller Community so I'd like to officially welcome you! 🎉👏

I suggest getting in touch with our Support Team for further assistance with this. Here on the Seller Community, we do not have the ability to look into your account or provide account-specific information, as this is a public forum.

Our Support Team would be able to take a look at your account as well as your Sales Tax and Service Charge setup to determine what may be causing this issue. They could also take a look at an example of a transaction where this behavior occurred to get a better understanding. If you haven't already, please reach out directly by giving us a call at 855-700-6000 between 6am-6pm Pacific Time Monday-Friday.

I hope this information is helpful but please do let me know if you have any additional questions.