How do I apply tax to a discount after taxes?

[Jrami_]

We use square for catering services and are running into the deposit discount showing before taxes therefore no taxes are paid on that amount. The deposit goes towards their total which is taxed. Is there a way to add the discount refund after the subtotal and taxes? Any idea on how to best navigate this is greatly appreciated.  

[TheRealChipA · Accepted solution]

Hey there @Jrami_.

Edit your “deposit” discount code. In the advanced settings (see screen shot) is the “apply discount after taxes” toggle. Turn it on and save the code again.  This will do what you need, I think. 

 

[TheRealChipA]

@Jrami_ And other who find this thread.  I’m circling back because I realized that I should have also made a fair warning.  Some states do not allow us to charge sales tax on discounts.  This is why that toggle exists.  So, before anyone applies discounts after sales tax is applied, it would be wise to first check with your taxing authority.