Hi @DonKESHP. You can, but then you’d probably be in trouble with your state’s sales tax authority. Here’s why. Usually sales tax is required based upon the total amount of a transaction. So if they add more to the transaction, then there will be even more sales tax due. It’s a never-ending loop, if you catch my drift.
Also, I’ll admit a little confusion. Since you are already including the sales tax in your items, and I assume that the price reflects adding that sales tax in, then the customer is already paying the sales tax. You are just collecting it and filing/remitting it every month, as required. All you really have to do here is price each item accordingly.
For example, let’s say you are selling a $20 cap and your sales tax is 5%. That would come out to $1 tax, for a total item price in your store of $21.00. The customer is paying you $20 to keep and you will be reserving the other $1 to remit to the state.
However, if the customer can optionally add another dollar, then you would owe an additional 5-cents to the state because that extra $1 would also be taxable by law.
Anyway, just set your prices so that you get what you want to out of each item, multiply that by 1.05 (or whatever percent your tax rate is) and make that the item price including tax.
I hope that makes sense.
Chip A.
Square Expert & Innovator and member of the Square Champions group. (But NOT a Square employee, just a seller like you)
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