How to Turn Off Sales Tax for Tax Exempt Clients

[JBsBarnyard]

Hello! 

We sell to many churches, schools, hospitals, etc that are all tax exempt organizations. We do not ring these type of orders up in person, as we will send them an invoice from our Square Dashboard. When I invoice the tax exempt client, is there a way for me to just quickly select that this is a tax exempt customer and they should not be charged sales tax? I understand I can go to my items and manually change the tax status of each item, but that is inefficient. 

At one point I thought about creating a discount that was the exact amount of the sales tax, but then at the end of the month when it comes time to pay my sales tax with the state, Square will report inaccurate amounts. 

[Summer2024]

Hi there @JBsBarnyard 👋

I know it would be a pain to manually edit the tax settings for each item, but a workaround here could be to create "Tax Exempt" versions of your items to add to these invoices. You could duplicate the regular item and then title it "Tax Exempt (Name of item)". 

Currently, there is no way to mark a sale as tax-exempt with invoices, but this workaround could work. It would just take some extra work in the backend to get started. 

I hope this helps! Let me know if you have any questions!

[JBsBarnyard]

Thanks @Summer2024 for this feedback! Although this is not what I hoped for, it might make due until Square can find a resolution to this. My only reservation about the method you suggested is that it would alter my sales reports each month, as I would have to add up my sales for the same item, but in the two categories (the regularly sold items + the tax exempt sold items). In the grand scheme of things, this is a minor issue with the reporting, however, with a platform as advanced as Square, I would assume this is an addition they could easily add. 

Thanks for your feedback!