Is sales tax automatically taken on all transactions?

[m5pnicee]

trying to figure out if sales tax will automatically be applied to all card transactions and would it apply the amount applicable for the state

[JK_Fiber_Art · Accepted solution]

Hi M5pnicee,

Yes, if everything is setup and enabled - sales tax is automatically applied to all transactions - online or in person.  There are good details here that explains how configure Taxes.   All funds from a transaction except for the Transaction Processing Fees are then deposited to your bank account - this amount includes the Tax.   Square keeps track of the Tax Amount and will provide you with a 1099.  What Square does not do is file your Taxes for you - that's something you must do.   If you're having an issue with your Tax Settings, it's possible some Community Members can assist however, the Community is not the same as Tech or Customer Support - the volunteer members here cannot look at user Account setups so sometimes we have to guess.   If more help is needed then contacting Customer Support is your next option.  (Hope that helps.)

[JK_Fiber_Art · Accepted solution]

Hi M5pnicee,

Yes, if everything is setup and enabled - sales tax is automatically applied to all transactions - online or in person.  There are good details here that explains how configure Taxes.   All funds from a transaction except for the Transaction Processing Fees are then deposited to your bank account - this amount includes the Tax.   Square keeps track of the Tax Amount and will provide you with a 1099.  What Square does not do is file your Taxes for you - that's something you must do.   If you're having an issue with your Tax Settings, it's possible some Community Members can assist however, the Community is not the same as Tech or Customer Support - the volunteer members here cannot look at user Account setups so sometimes we have to guess.   If more help is needed then contacting Customer Support is your next option.  (Hope that helps.)

[Candlestore · Accepted solution]

@m5pnicee ;

Along with what was already said which is good for setting up your Sales taxes and the rate. You also need to specify which Tax if any is applied to each Item in your Library / Catalog.  You also did not mention if this is related to Online sales or in Person Sales.  I sell candles which requires sales tax to be collected in my state, so on my Candle items I have set my states tax rate of 6% turned on for every candle we sell plus some other items.  Now we also sell Clothing and Fudge which are not Taxed in my state, so these items have the Tax set to No tax, or similar saying at the item level.  So whenever we ring up these sales in person the correct Tax Rate is applied by Square automatically.  This link here helps with setting up the sales tax and then how to apply it to each different item.  The easiest way to apply it to Multiple Items is to export your Square Items Catalog as a csv and then in the last column to the right I believe is a Column TAX.  This value for Square is either a Y or an N, Y for Yes apply a tax, or N for No sales tax will be applied for this item.