Is there a way to create a post-tax discount?

[ARDG]

We're looking to accept a credit voucher from a 3rd party, but want the person redeeming the voucher to pay tax on the full amount.

[#2]

Hello! While I can definitely understand how this feature could be useful in a number of scenarios, our discounts are currently only able to be applied before taxes. 

I'll be sure to share your feedback with our Product team!

PS) If my answer solved your problem, would you mind marking it as "Best Answer"? That'll help the rest of the community find what they're looking for. If not, just write back, and I'll continue to help. Thanks!

[IndigoSkin]

Going back through here as now I have an issue of the tax re-calculating when we try to use a gift certificate( that is a paper creation of our studio, not a bought plastic kind.). So, we use this work around of the "other payment type" to make it happen . BUT my question now is : if I just buy the Square Gift Cards will I need to do the work around ? Or will it process correctly because it is a Square Feature ? @GlassJudy @Helen ?

[JustinC]

Hey @IndigoSkin - With Square Gift Cards, there's no workaround needed. Accepting Gift Cards is a built in payment type with Square's POS so there's no need to process them as 'Other Tender'. 

Learn more here. 

[FuzedGlass]

Any chance there has been any improvement in this? I just gained ownership of an art studio which has always had a "stay & play" discount that customers can use when they pick up their creations from their last visit. It is incredibly helpful getting customers to become regulars and become habitual visitors, but I have looked at how much tax I'm picking up because of this discount issue and....it isn't pretty.

[Valentina]

At this time, we do not have an update to share about the ability to create post-tax discounts, @FuzedGlass. Could you possibly share with us some context surrounding how the inability to create a post-tax discount is causing you to pick up tax?

As we do not provide tax advice, and each state has different tax regulations, I would definitely recommend speaking with a tax adviser in this situation. They should be able to help answer some questions about discounts as they relate to taxes.

[Shaylagee]

Hi
I'm wondering if there is a way to an invoice in the following way:
Retail price of item(s)
add shipping and handling
Give a subtotal
Add tax
Subtract a percentage or dollar amount AFTER tax, that is NOT taxed.
Give the final total.

Is this possible? This is the way I need to do it, with the discount being taken off at the very end. I cannot figure it out at all and can't seem to find it in the forum either.

Any help is appreciated.
Many thanks.

[Valentina]

Hi @Shaylagee - and welcome to the Seller Community!

At this time, discounts are applied before taxes, so I've moved your post here where others have made the same request. You may find a solution in this thread that makes sense for your business. If you have any context as to why you would like to use post-tax discounts for your business, examples are helpful for our product teams. We'll be sure to update this thread if anything changes.

[Syn]

I actually turn off the tax ability and add my discount and tax as separate line entries. It's more work (-ish), but I don't 'eat' the tax that way.  

One day Square will fix this, I guess. 

There are SO many that are in need. @Valentina @FuzedGlass @JustinC etc....

[Bogies]

This is definitely a feature that needs to be added. Fours years after the original question and the best that Square can do (or rather its customers came up with) is to split the payment to take off the discount. We accept Groupons and our customers should be paying sales tax on their order. The way it works in Square right now, sales tax isn’t even charged if the Groupon is more that the total after taxes. So, no taxes are even being reported, much less paid, to the state.

Square, PLEASE address this issue! It’s causing companies who don’t know any better to not be compliant with their state sales tax reporting.

[Joe]

We hear you, @Bogies. We appreciate you adding your voice here. I am passing your feedback along to the appropriate team. We really appreciate your patience here. 

[skincarebykayla]

I often sell Services and Items on the same ticket. Items are subject to Sales Tax, Services are not. Sometimes, I run service specials for dollar amounts (i.e. $15 off).

I just realized Square is subtracting fractions of the discount from the Service & Item when discounting, then it calculates Sales Tax. Now, the amount of Sales Tax collected is incorrect. As a result, I owe more Sales Tax than was technically collected. How do I fix this?