Charging tax when using a gift certificate

[wkurtin]

When applying a gift certificate to a purchase, how do I set up the Square terminal to charge sales tax on the whole amount, prior to applying the certificate?

[JustinC]

By gift certificate, do you mean a promo code/discount? If so, tax is calculated based on the total after a discount is applied, not before. 

@wkurtin

[wkurtin]

No this is a paper certificate worth a certain amount that is to be applied to the sale, but only after the sales tax is figured based on the whole amount. It would be equivalent for example to buying an item that costs $40 and paying $20 in cash and charging the rest.

[JustinC · Accepted solution]

Okay - Square doesn't offer paper gift certificates, so I'm assuming you're redeeming the certificates in the form of a discount or a split payment ($20 cash, $20 Other gift card/certificate which simply records the payment in your records). 

I suggest the latter - split payment - so tax will apply to the whole sale amount and not the adjusted price after the certificate is applied.  

@wkurtin 

[wkurtin]

Ok thank you. I will try that.

[KelseyRWC]

Answer found.