Square POS | How to Setup Sales Taxes for Online Deliveries and Order Pickups

If you're using Square Point-of-Sales and have enabled online delivery or pickup services for your food & beverage or retail business, this article will help you properly set up sales tax rates.

Log in to your Square account at https://app.squareup.com or use the mobile app.

Go to Settings > Payment > Sales taxes

Scroll down to the Online delivery and pickup taxes section > Manage settings

Choose one of the following options:

• Apply automatically generated tax rates based on your tax enrollment location

• Manually apply taxes based on the delivery destination

  • Click the Manage manual tax rates button

  • Select the Edit hyperlink > Select states

  • Choose the state(s) you want to collect sales tax in > Save

    By default, the state and local tax rates will be computed, but you may override both if necessary by selecting the Edit hyperlink.

• Apply your default sales tax rate

• Do not collect taxes

You may optionally elect to make delivery fees exempt from tax by selecting the checkbox in the Additional settings section.

Choose one of the following options:

• Apply automatically generated tax rates

• Apply default rates for QR code sales tax

Choose one of the following options:

• Apply automatically generated tax rates based on your tax enrollment location

• Manually apply taxes based on the pickup location

  • Click the Manage manual tax rates button

  • Select the Edit hyperlink > Select states

  • Choose the state(s) you want to collect sales tax in > Save

    By default, the state and local tax rates will be computed, but you may override both if necessary by selecting the Edit hyperlink.

• Apply your default sales tax rate for pickup

Choose one of the following options:

• Additive tax - Taxes computed based on the unit price and listed as a separate line item on the receipt.

• Inclusive tax - Taxes are included in the unit price of each line item on the receipt.