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. 

[tranguyen]

Great flag @SVLFever , and thank you for filing this @cRamsburg1 ! What I'll do is combine a few of the requests together (for Tax Exempt Customers) while leave some of the other as its own individual feature (mark invoice as tax xempt, and filter for tax emxempted items in report) as they are related, but different enough that we will want to track them by themselves. 

[homeprogreen]

There is a fairly easy workaround for accomplishing this if your tax is a percentage. What you would do is create a customer group named “ Tax exempt or wholesale”. Add those customers to that group. Go into your discounts and create a discount that is the same percentage as the tax and set it to be automatically applied to every sale for members of that customer group. For your tax reports you would need to run the tax report as you normally do and also run the group discount report for that same time period in order to be able to minus out the tax exempt total so you have the correct taxable sales amount for your tax filing. It ain’t pretty but it’s the only way that I have been able to get it to automatically deduct the taxes and it does work 

[SVLFever]

My fear in doing it that way Steve @homeprogreen is that in an audit, the taxable item sales would show incorrectly "high" in a sense.  An auditor receiving this without the explanation might be a real PITA.

It's part of the reason why I want to be able to print a report for "tax exempt sales", as I think it would be critical in an audit.

[ehflower]

and please make it so we have better daily, monthly and yearly reporting also

https://community.squareup.com/t5/Archived-Ideas-Read-Only/Manage-tax-exempt-clients-with-daily-repo...  Thank  you

[homeprogreen]

@SVLFever @I understand that. That’s why I said to create the discount and name it tax exempt. You are able to print the report for each separate discount you have setup 

[delmontag]

Frankly, removing the tax on the sale is easier than adding a discount. The point here is we shouldn't have to do either. Just give us the ability to mark a customer as tax exempt and then don't put the tax on their sales.

[Equality3d]

Square is one of the largest point of sale systems in the world.  Needing to jump through hoops and make questionable business practices for something that is very elementary from a B2B perspective, is disappointing. I hope this is implemented soon.