Customer Tax Exempt Automation at the Customer Level

[Flowerman]

The ability to have all "Tax Exempt" Customers automatically not charged Sales Tax at the Customer level and not the Item Level. By current tax LAW there are items that are taxable while the customer is tax exempt on the sale. While Square allows you to add a tax exempt status by adding their Tax Exempt ID number in the customer setup, it fails hugely in the execution of the sale. From not removing the sales tax to also not reporting it without the ability to classify Taxable verses Non taxable Sales. For this reason alone they will be never beat out their competitors for accurate reporting and handling of Non-Taxable Sales.  

I've seen this issue posted for several years, with no updates to the software as of today 05/08/2023. Please listen to your customers and make this simple change without sending it over and over again to Feature Requests. If they can't handle it, hire a new team who can. 

[bagelboss]

@kristen My restaurant gets a lot of orders from the tax-exempt major state university 2 blocks away. Due to this tax exemption issue, we tend to invoice those orders outside of Square entirely.

Having an automation in place that would allow them to place their tax-exempt orders both in-store at our POS & via our Online store would mean Square can then capture credit card fees on these transactions that aren't feasible otherwise. Toggling off sales tax at the transaction level is not a real "solution" and is not possible (AFAIK) through the Online store. Tax exempt customer records would be a tremendous help in streamlining our business.

[Minion]

I used to the same thing and send invoices outside of Square.  @WoodCandleCo  @bagelboss .Don't forget to give a kudo to the original post to draw attention  Hopefully we can get this implemented!

[WoodCandleCo]

@Minion Done! Thanks for the note on that...didn't even think about it on this one.

[bagelboss]

@Minion kudos

[Minion]

Awesome. Yeah i' pretty sure replies don't mean as much as the old thumbs up on the the OP  Thanks @bagelboss @WoodCandleCo 

[lsadows]

@MayaP 
This would also save me hours! I sell regional native plant species to a broad array of customers, but many of them are government or otherwise non-profit entities that require tax exemptions (Think US Forest Service, universities, Environmental non-profits). 
I constantly have these customers purchase through our online store only to need a refund for the amount in tax since I cannot refund the actual taxes. This means that I either leave these clients hanging or eat the loss myself.

The only work around I have found is to ask these customers to reach out to me when they want to place an order so that I can create an invoice with each item manually set to tax exempt. It's a huge inconvenience for me and the customer.

Ideally, there would be something in their customer profile that allows us as sellers to mark them as Tax Exempt, so that all purchases made through that customer account are automatically tax free. I imagine as sellers we would simply set up a Tax exemption application process to confirm Tax IDs and then we'd only have to make the adjustment once per customer.

I really hope that the team can accommodate this, I know it's been requested for quite some time, but the issue is making our daily work increasingly inefficient of late.

[DeanSleeper]

We need to be able to classify customers as taxable/untaxable. We have wholesale and farmer customers who do not pay tax. To work around this I have to duplicate my entire item catalog which also makes inventory tracking a nightmare.

[HawkFarms]

Has anyone found another POS system along the same price per month as Square that does this? We are getting ready to merge with another small business and this feature is really needed. I have Square now and would hate to move to something else but I’ve been reading the  feeds and this has been asked for since 2018. Not sure if it will ever be a feature. 

[WBDPS]

I ventured into support looking for this.  We work with resellers and tax-exempt entities. We are currently running those through QB and would love to consolidate all invoicing into Square. We have over 13k customers in our directory, it's impossible for us to remember who is tax exempt and who isn't. I have TAX EXEMPT next to company's names so my project managers know, but it inevitably happens that turning it off at the line item will be missed . It's embarrassing for a client to have to remind us about their status so we've had to move that to a system that DOES automatically turn off sales tax for those clients.

[SVLFever]

I agree @WBDPS, having the ability to set a customer to Tax-Exempt would help, but I also need a report that shows how much in Tax-Exempt sales occurred.  Can we get both please Square???