When creating a new item last month, I marked it as "non-taxable," only to discover that Square was counting it towards my taxable sales! I noticed because my tax liability number tripled.
I only created one new item last month, so I looked at it assuming I accidentally marked it incorrectly or added a soda tax or something, but sure enough, it said "non-taxable," despite it showing up in my taxable items reports.
When I looked at a different item in the same category, it said "no-taxes." By changing the toggle on the new item to show "non-taxable" in the off position, and then un-checking sales tax and soda tax, my new item now reads as "no taxes" to match the rest of my tax free items.
My question is two-fold. Firstly, what is the difference between "non-taxable," and "no taxes?"
Secondly, why would something marked as "non-taxable" in the item details be taxed in my reports?
Hello there @coffee11300
This is a very interesting report, because up until this point, to me, non-taxable meant an Item that should not be included in tax reporting. However, with your report, I can see how this is a little confusing.
Because of this, I am going to go ahead and recommend you reach out directly to our Support Team, so they can take a closer look at your account in real-time and both answer your questions and point you in the right direction.
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