What are the "Tax on Payment Fees" in my Sales Summary Report?

[artwithbean]

The title of this thread has been edited from the original: "Tax on Payment Fees" in Sale Report.

Hi all,

I've used square for a while but not on desktop until now. Looking at the sales report after a market today I noticed a section called "Tax on Payment Fees", but can't find any information on what this is referring to. I don't have a GST section set up and just include it into my prices, and it is not that % anyway. Any ideas?

[lawnbrook · Accepted solution]

Hi There @artwithbean,

Welcome to the seller community! We're glad to have you here.

Payment processing fees are a service and are therefore subject to GST. Just like when you buy a coffee and pay GST, you do the same when 'buying' the payment processing from square.

So your payment processing fee is: 1.6% of your processed amount (1.6% of $510 is 8.17)

Of the $8.17  - 1/11th is GST - that's $0.74  (when rounded).

Just like on your docket from the supermarket, if you're not registered for GST then this is pretty much 'informational'

If you are registered for GST then that is the figure you would claim as a GST input.

I hope that makes sense 

Bruce

[artwithbean]

Thank you! That makes so much sense that I feel a bit silly, just couldn't find it written down anywhere