Calculate Order - Service Charge not being taxed

I am trying to use Calculate Order in the API Explorer to test getting the total order amount to be used in a payment, but the service charges are not being taxed. I have pricing_options auto_apply_taxes set to true and I have the service charge set as taxable (taxable : true) and the calculation phase as SUBTOTAL_PHASE. The items are being taxed, but not the Service Charge. Any thoughts?

Thanks,
Jeff

Hi, what is the Square order_id that you see this?

It is not an existing order. I was just using the API Explorer for calculate_order and entering some data to see what was returned. I can give you the object being sent and the response if that helps? I was trying it out thinking I would use calculate order to show totals in my application before an actual order is created and used for payment.

Thanks,
Jeff

Yes, thank you, that would be helpful.

REQUEST
"order": {
      "location_id": "5K6CMKC4B78W1",
      "pricing_options": {
        "auto_apply_taxes": true
      },
      "service_charges": [
        {
          "amount_money": {
            "amount": 3000,
            "currency": "USD"
          },
          "calculation_phase": "SUBTOTAL_PHASE",
          "name": "Delivery",
          "taxable": true
        }
      ],
      "state": "OPEN",
      "line_items": [
        {
          "quantity": "1",
          "item_type": "ITEM",
          "catalog_object_id": "3GIFEIXO6MHGQMKWUGD4VAZE"
        }
      ]
    }

RESPONSE
    {
  "order": {
    "location_id": "5K6CMKC4B78W1",
    "line_items": [
      {
        "uid": "3GdEho4VPUNan5j9fYxKJD",
        "catalog_object_id": "3GIFEIXO6MHGQMKWUGD4VAZE",
        "quantity": "1",
        "name": "Caramel Cake",
        "variation_name": "8\" Serves 12-16",
        "base_price_money": {
          "amount": 2900,
          "currency": "USD"
        },
        "gross_sales_money": {
          "amount": 2900,
          "currency": "USD"
        },
        "total_tax_money": {
          "amount": 290,
          "currency": "USD"
        },
        "total_discount_money": {
          "amount": 0,
          "currency": "USD"
        },
        "total_money": {
          "amount": 3190,
          "currency": "USD"
        },
        "variation_total_price_money": {
          "amount": 2900,
          "currency": "USD"
        },
        "applied_taxes": [
          {
            "uid": "8v8Pctm6DOgCXwqnFJlNeB",
            "tax_uid": "pfTnvdd4D3kEpEPTBAGdPC",
            "applied_money": {
              "amount": 290,
              "currency": "USD"
            }
          }
        ],
        "item_type": "ITEM"
      }
    ],
    "taxes": [
      {
        "uid": "pfTnvdd4D3kEpEPTBAGdPC",
        "catalog_object_id": "KNFSMHFCK3CHHFHWDMOEGRBM",
        "name": "Sales Tax",
        "percentage": "10.0",
        "type": "ADDITIVE",
        "applied_money": {
          "amount": 290,
          "currency": "USD"
        },
        "scope": "LINE_ITEM",
        "auto_applied": true
      }
    ],
    "created_at": "2021-07-20T13:44:06.803Z",
    "updated_at": "2021-07-20T13:44:06.803Z",
    "state": "OPEN",
    "version": 1,
    "total_tax_money": {
      "amount": 290,
      "currency": "USD"
    },
    "total_discount_money": {
      "amount": 0,
      "currency": "USD"
    },
    "total_tip_money": {
      "amount": 0,
      "currency": "USD"
    },
    "total_money": {
      "amount": 6190,
      "currency": "USD"
    },
    "service_charges": [
      {
        "uid": "iUABj1Bm0BC4V36lsjbdHB",
        "name": "Delivery",
        "amount_money": {
          "amount": 3000,
          "currency": "USD"
        },
        "applied_money": {
          "amount": 3000,
          "currency": "USD"
        },
        "calculation_phase": "SUBTOTAL_PHASE",
        "taxable": true,
        "total_money": {
          "amount": 3000,
          "currency": "USD"
        },
        "total_tax_money": {
          "amount": 0,
          "currency": "USD"
        }
      }
    ],
    "total_service_charge_money": {
      "amount": 3000,
      "currency": "USD"
    },
    "net_amounts": {
      "total_money": {
        "amount": 6190,
        "currency": "USD"
      },
      "tax_money": {
        "amount": 290,
        "currency": "USD"
      },
      "discount_money": {
        "amount": 0,
        "currency": "USD"
      },
      "tip_money": {
        "amount": 0,
        "currency": "USD"
      },
      "service_charge_money": {
        "amount": 3000,
        "currency": "USD"
      }
    },
    "pricing_options": {
      "auto_apply_taxes": true
    }
  }
}

I have now tried the same thing in the sandbox for create order and it looks like it is the same issue. I was hoping it was just a calculate order issue. It seems that service charges are not being taxed with taxable true and auto_apply_taxes set to true. If I am missing something please let me know. This makes it difficult to create an order with the correct taxes from our application if service charges don’t have taxes applied. Any help would be appreciated. One more thing. Maybe this will help. When orders are created through the Square Online Website I can see that the service charges have taxes applied in the order object when I pull it down.

Thanks,
Jeff