I've asked this before, but the answers have been unworkable, so I'm starting over.
My state has a sales tax of 9.75%.
Most of my inventory is sold with tax added to the price.
But I sell one item with tax included in the price. I charge $10 for that item. This means that roughly 9 cents of that sale is tax.
My state makes all disabled veterans exempt from sales tax. So for this particular item, I have to not collect the sales tax.
For these sales, turning the sales tax off doesn't do anything. The price is still $10.
Following the advice of others on this forum, I created a discount equal to the tax amount, but that creates a new problem. Even after applying the discount, the amount collected is still included in my monthly sales report, and I still have to remit tax to my state on the discounted price. That means I now pay the sales tax for this discounted transaction out of my own pocket.
Does anyone (hopefully someone from Square company) have the correct solution to this?
Why does Square give me the option to include tax in the price, but not give me the ability to turn off the tax and adjust the price for this type of transaction? Tax exemption rules may be different from state to state, but there are millions of tax exempt customers out there.
This is a problem for me, and I am losing money on this.
