Collecting sales tax in Square
Square has built-in sales tax collection functionality that you need to enable and configure inside of your Square Dashboard and you can get started here.
TaxJar imports your order history from Square and compiles TaxJar Reports to break down the sales taxes you're collecting via Square. In these Reports, we assign the collected taxes to the proper jurisdictions for each state to simpifly your filing process.
After you have your rates set up in Square, you'll provide the city and zip for those tax rates in the TaxJar app. We show you how to do that in this guide.
Once you're collecting in Square and you have Square connected to TaxJar, you're all set for us to start compiling your TaxJar Reports.
Remember that if you use your Square account in different locations, you'll need to make sure that you apply the correct rate in Square Register as usual at the time of the transaction. Use our local rate tool to do this automatically.
(We'll import your transaction data exactly as it happened during the Square transaction, which means the rate you use during the transaction will determine the location of the sale in your sales tax Reports as well.)
Need More Help?
- We walk you through the steps of setting up sales tax collection for Square on our blog.
- You can also use our location based sales tax rate lookup to automatically add a local sales tax rate to Square.