Use Conditional Sales Tax Rules with the Square App

Whether your customers are eating in or taking away, you can apply conditional VAT accurately and automatically with the Square app on an iOS or Android device. Customise your VAT settings from your online Square Dashboard. 

Manage Tax Rules Online

Set Up Tax Rules

Before getting started, make sure you complete the following:

• Create at least one item

• Create at least one tax

Create Tax Rules to omit VAT based on your Items. To apply Tax Rules correctly at checkout, update the Square Point of Sale app on your iOS or Android devices. 

1. From your online Square Dashboard, click Items > VAT.

2. Click Create a Tax Rule.

3. Enter a rule name > click Select VAT to choose the VAT to omit from this rule. 

4. Click Select Locations to select locations where the tax rule will apply.

5. Click Select VAT exemption rule > choose the option* that will trigger this tax rule.

6. Click Assign Items to select items that will have VAT omitted.

7. Click Save

Edit Tax Rules

1. From your online Square Dashboard, navigate to Items > Taxes.

2. Click the tax rule you’d like to modify to edit the rule.

3. Click Save.

Tips for Using Tax Rules

• Conditional tax rules allow you to preset conditions where VAT won’t be applied. During setup, make sure you select items that won’t have VAT applied when a specific dining option is used.

• Conditional VAT can be applied to all items in the basket, or to individual items.

• A tax rule can’t be applied to a basket total – only to the items in the basket.

• Tax rules aren’t compatible with item modifiers.