Hi Phil (@lawofeveryday), welcome to the Square Community!
It sounds like GST may be applying more broadly in Square than intended, so there are a few key areas in your account worth checking to ensure everything is set up correctly.
Start by reviewing your tax settings in Square to confirm that GST is only applied to the specific items you’ve selected, and not being automatically applied across all sales. To do this, log in to your Square dashboard and navigate to Settings > Account & Settings > Payments > Sales Taxes. From there, verify that GST is assigned only to the relevant items and that tax settings are correctly enabled for all applicable locations associated with your account.
Also, keep in mind that when GST is marked as inclusive, it doesn’t add additional tax on top of the item price, it simply means the tax is included within the listed price. It will appear on customer receipts for transparency, but it’s your responsibility as the business owner to ensure the item pricing correctly accounts for the GST portion.
Since you're syncing your sales to Xero, I generally recommend reaching out to Amaka support (if you're using their integration) to confirm how GST is mapped during the sync. They can help ensure only GST-applicable items are recorded as taxable income in Xero and that your BAS reporting stays accurate.
If we can help answer any other questions about your Square settings, please let us know!
Laurie
Community Moderator, Australia, Square
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