Subscription Missing Sales Tax

albertom · ‎04-05-2025

I need help getting a subscription plan to charge Sales Tax when it charges the user for the monthly membership. I TX, sports club memberships are taxable. This is what I have done so far:
-I set up the different memberships as Items, and marked them as taxable.
-I set up 2 subscription plans, one that charges monthly and one yearly, and assigned the respective Items.
-I set up my first customer with a monthly subscription.
When they were billed, Square did not collect sales tax even though the items are taxable. What am I missing?

TheRealChipA · ‎04-05-2025

Hi @albertom. So, subscription taxability is not controlled at the item level, but rather the subscription level. When you create a customer subscription, there will be a line in the billing summary section that says “add sales tax.” Click on that line and enter your sales tax rate. This is how it works currently.

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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