GST calculations incorrect

[bakerlou]

Hello

The GST calculation doesn't seem to work as anticipated where GST-free items are sold.

I sell some food-related GST free items and noticed that the amount of GST showing on the Square generated forms includes GST on those items. 

This article tells how to set up items as exempt from GST

https://squareup.com/help/au/en/article/5622-use-conditional-sales-tax-rules-with-the-square-app 

but even when I do this, the items are still included in the GST calcuation.

I contacted support and the response was 

It appears that this behavior is due to what is known as the "magic tax" in Australia. The Goods and Services Tax (GST) is generally required on most sales in Australia and is automatically applied to specific items sold online.

This operation is part of the expected functionality within your Square account. 

Other than manually preparing a Tax Invoice on request, does anyone have any other workarounds for this? I'm concerned that some of my business customers will rely on the incorrect calculation.

Thanks

BakerLou  

[Laurie_]

Hi @bakerlou! Me again, I'm catching up on a few of your threads today!

You're absolutely right, Square Online doesn’t currently support tax-exempt sales at the item level. So even if items are marked as GST-exempt in your inventory, GST will still be applied at checkout when those items are sold through your Square Online store.

This is a known limitation, and the GST amounts you're seeing are in line with the system's current expected behaviour.

While I'm hopeful that improvements will come, for now, manual workarounds are the only available option until a more permanent solution is introduced.