# Calculate Order - Service Charge not being taxed

**URL:** <https://developer.squareup.com/forums/t/calculate-order-service-charge-not-being-taxed/3052>\
**Category:** Questions\
**Tags:** orders-api\
**Created:** [July 19, 2021, 3:26am UTC](https://developer.squareup.com/forums/t/calculate-order-service-charge-not-being-taxed/3052 "2021-07-19T03:26:11Z")\
**Posts on this page:** 8\
**Page:** 1

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**Author:** ![jtstephenson](https://avatars.discourse-cdn.com/v4/letter/j/71e660/32.png) [@jtstephenson](https://developer.squareup.com/forums/u/jtstephenson)\
**Post date:** [July 19, 2021, 3:26am UTC](https://developer.squareup.com/forums/t/calculate-order-service-charge-not-being-taxed/3052/1 "2021-07-19T03:26:11Z")

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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

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**Author:** ![Bryan-Square](https://sea1.discourse-cdn.com/square/forums/user_avatar/developer.squareup.com/bryan-square/32/38_2.png) [@Bryan-Square](https://developer.squareup.com/forums/u/Bryan-Square)\
**Post date:** [July 19, 2021, 8:58pm UTC](https://developer.squareup.com/forums/t/calculate-order-service-charge-not-being-taxed/3052/2 "2021-07-19T20:58:34Z")

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

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**Author:** ![jtstephenson](https://avatars.discourse-cdn.com/v4/letter/j/71e660/32.png) [@jtstephenson](https://developer.squareup.com/forums/u/jtstephenson)\
**Post date:** [July 19, 2021, 9:29pm UTC](https://developer.squareup.com/forums/t/calculate-order-service-charge-not-being-taxed/3052/3 "2021-07-19T21:29:35Z")

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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

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**Author:** ![Bryan-Square](https://sea1.discourse-cdn.com/square/forums/user_avatar/developer.squareup.com/bryan-square/32/38_2.png) [@Bryan-Square](https://developer.squareup.com/forums/u/Bryan-Square)\
**Post date:** [July 19, 2021, 9:35pm UTC](https://developer.squareup.com/forums/t/calculate-order-service-charge-not-being-taxed/3052/4 "2021-07-19T21:35:49Z")

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Yes, thank you, that would be helpful.

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**Author:** ![jtstephenson](https://avatars.discourse-cdn.com/v4/letter/j/71e660/32.png) [@jtstephenson](https://developer.squareup.com/forums/u/jtstephenson)\
**Post date:** [July 21, 2021, 1:51am UTC](https://developer.squareup.com/forums/t/calculate-order-service-charge-not-being-taxed/3052/6 "2021-07-21T01:51:01Z")

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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

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**Author:** ![doseofted](https://sea1.discourse-cdn.com/square/forums/user_avatar/developer.squareup.com/doseofted/32/1178_2.png) [@doseofted](https://developer.squareup.com/forums/u/doseofted)\
**Post date:** [May 19, 2022, 2:09pm UTC](https://developer.squareup.com/forums/t/calculate-order-service-charge-not-being-taxed/3052/7 "2022-05-19T14:09:43Z")

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@jtstephenson were you able to find a solution? I’m facing a similar issue while adding a service charge using the [Square Orders API](https://developer.squareup.com/reference/square/orders-api/create-order). I’ve created a service charge like so:

```nohighlight
const exampleServiceCharge = {
	name: "Processing Fee",
	amountMoney: {
		amount: 250n,
		currency: "USD"
	},
	taxable: true,
	calculationPhase: "SUBTOTAL_PHASE"
}

```

and applied this to a new order of which `autoApplyTaxes` is set to `true` on the order. [From the documentation](https://developer.squareup.com/reference/square/objects/OrderServiceCharge#definition__property-taxable), it appears that order-level taxes should be applied to the subtotal including the service charge when calculated as a part of the subtotal. Is there something that I am missing?

@Bryan-Square I’m not sure if it’s helpful but I’ve created an example order using the sandbox with an ID of `vF0ItA7DSjt03sVXhNdk5zTHACNZY`

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<div class="post-metadata">

**Author:** ![Bryan-Square](https://sea1.discourse-cdn.com/square/forums/user_avatar/developer.squareup.com/bryan-square/32/38_2.png) [@Bryan-Square](https://developer.squareup.com/forums/u/Bryan-Square)\
**Post date:** [May 19, 2022, 7:39pm UTC](https://developer.squareup.com/forums/t/calculate-order-service-charge-not-being-taxed/3052/8 "2022-05-19T19:39:40Z")

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I checked with the team and at this time service charges don’t support `auto_apply_taxes`. We’re constantly working to improve our features based on feedback like this, so I’ll be sure to share your request to the API product team. 🙂

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<div class="post-metadata">

**Author:** ![jtstephenson](https://avatars.discourse-cdn.com/v4/letter/j/71e660/32.png) [@jtstephenson](https://developer.squareup.com/forums/u/jtstephenson)\
**Post date:** [May 20, 2022, 9:17pm UTC](https://developer.squareup.com/forums/t/calculate-order-service-charge-not-being-taxed/3052/9 "2022-05-20T21:17:24Z")

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@doseofted  
I had to do the following: (you already have 1 and 2 the way I have them, but just listing for you)

1. Set the service\_charges attribute taxable: True
2. Set the calculation\_phase: SUBTOTAL\_PHASE
3. Create taxes object inside the order with a the particular catalog\_object\_id used for that location for calculating taxes. Setting scope:ORDER
4. On the pricing\_options set auto\_apply\_taxes:False

I hope this helps.
