Customer Tax Exempt Automation at the Customer Level

[Flowerman]

The ability to have all "Tax Exempt" Customers automatically not charged Sales Tax at the Customer level and not the Item Level. By current tax LAW there are items that are taxable while the customer is tax exempt on the sale. While Square allows you to add a tax exempt status by adding their Tax Exempt ID number in the customer setup, it fails hugely in the execution of the sale. From not removing the sales tax to also not reporting it without the ability to classify Taxable verses Non taxable Sales. For this reason alone they will be never beat out their competitors for accurate reporting and handling of Non-Taxable Sales.  

I've seen this issue posted for several years, with no updates to the software as of today 05/08/2023. Please listen to your customers and make this simple change without sending it over and over again to Feature Requests. If they can't handle it, hire a new team who can. 

[HHF1421]

I would like an option added to the customer accounts for eligible tax exempt customers (we sell to farmers). I would like it if it would shut off the tax for the proper items or services that they are allowed exemptions and the option to save their form with their customer account. We must record with each sale when an eligible customer is using their exemptions aside from just shutting of the tax for that sale. If asked, we need a way to print out a report of these exemptions used.

[KatieFitch]

We sell to tax exempt customers too, and this would be extremely helpful for us. It would be awesome to be able to add the customer to the transaction, then when we add products to the sale, the taxes are turned off.

[KatieFitch]

My team would really appreciate the option to categorize a customer as Tax Exempt and automatically having taxes deleted from a sale when a customer in that category is added to the sale. 

Is anyone working on this? I've seen requests for this as old as 2016. 

[GRAVELDOGUSA]

I have asked this question as well.    I knew in my case it is not possible.    The reason is Tax Exempt is only if that customer would be resaleing what they are buying from you.    We build heavy equipment, so our customers are not resaleing the product, but if I buy paint or tires etc for our products that is tax exempt for us because it is being used for a product I am selling.   If I buy dog food etc.  it would not be tax exempt.   I hope this helps since no one has responded.

DM

Mississippi

[KatieFitch]

That makes sense. Maybe there needs to be a confirmation "This customer is tax exempt. Remove Taxes?" And then there's the option to remove them or remove taxes on specific items. If that's not possible and they have to transact two orders separately, so be it. 

Katie

[RobynR]

Hey @KatieFitch  @GRAVELDOGUSA,

Thank you both for your suggestion. Adding the option to categorize a customer as Tax Exempt and automatically having taxes deleted sounds like a great addition to the Square platform.

At this time, it is not in the plans, but our Product team will keep a look out to see if this is a feature that can be added in the future.

The more requests we have for this feature, the more likely it will be added.

[Kassi_]

Hey there, @HHF1421 -

I wanted to let you know I have moved your post to a similar feature request by another seller. Keep an eye on this thread for status updates on this "tax exempt" feature request. If you know if any other sellers that would be interested in this feature, please give them a tag. Our Product Team will keep an eye on the number of seller votes for this one. 

One of our Community Moderators, @RobynR, has recently updated the status. 

Thank you for posting in the Ideate Board. 

[HHF1421]

I would like this as well. The tax exempt customers category should have the option to automatically remove tax on the eligible items ONLY rather than doing this manually and to the entire order since some items we do sell do not qualify for tax exemption (in our case customers that are tax exempt is for farm items). We absolutely NEED to have this in reports if ever we need to pull up up who used tax exemptions and what it was used on. 

[ehflower]

We have been asking for this for a very long time.  It would truly help simplify reporting for us.  Thank you,

[4mfarmandfeed]

We have customers who have an Agricultural sales tax exemption---meaning their purchases of certain ag-related products are exempt from state sales tax. If I could at least have a simple way to determine at checkout who is tax exempt and who is not, I can manually select taxable or not taxable for each item (not ideal but it will work).

When I pull up the customer during the sale, I get a summary page. If I could see on the summary page if that person has turned in a tax exempt certificate or not, that would be very helpful. I set up a custom yes/no toggle for ag exemption, but it requires drilling down into the customer to see if it is a yes or not. Alternatively, if the customers could be grouped into tax exempt and not tax exempt, that would also be helpful---but I get an error when I try to set up groups based upon a custom field.