Taxes and subscriptions

Hello,

I have to make a subscription for a business that has 5 locations (different tax % in each location) and offers the same subscription in all 5 locations.

How do I add tax to this subscription?

a) Do I do this at the UpsertCatalogObject part and then I have to create 5 different subscription plans (one per location)?

b) Do I offer one subscription plan for the 5 locations and when someone subscribes I add the ```
tax_percentage to it?
In this case, if the subscription plan costs $10 and the tax is 10%, would the customer pay $11 or the customer pays $10 and I pay the $1 in tax?

thanks

By default, taxes are not added to the subscription invoice. You can optionally specify a tax percentage when creating individual subscriptions. So depending on the business location you might configure different tax rates. Square then bills the customer for both the subscription and taxes. :slightly_smiling_face:

Thanks @Bryan-Square :slight_smile:

Is the tax deducted from the subscription price or added to it?

So if the subscription is $10:

a) does the customer pay $10 + tax

or

b) the customer pays $10 and the tax is deducted from the $10?

thanks

The tax will be added to the subscription price. :slightly_smiling_face:

**We are planning to start a service and my customers will be in a number of states. When we start we won’t have enough generated revenue in each state to require tax to be collected. So should I create a custom subscription for each state or tax authority that at some point I may have to collect tax? I then set the subscription with no tax. When I discover I am going to start needing to collect tax in that state I can then send emails to customers in that state informing them that on the next billing cycle we are going to be collecting sales tax. Is that the correct approach or is there a better way? Is it a problem to then have possibly hundreds of subscriptions?

Any questions on taxes as to whether or not you collect them or the amount you collect you should consult a tax professional. We give you the ability to collect a tax but the logistics of collecting the tax should go through a tax professional. :slightly_smiling_face:

I don’t have an issue with what tax I need to collect. I am trying to figure out if this is going to cause a problem on square when I create subscription 999 as our application grows. Is there a problem to do this as a 1000 + subscriptions with square.
In summary, I am wanting to know if this is the correct way with square to create a “Custom” subscription, for every customer that I have, so it will have the price + their sales tax as their subscription price.

Are you wanting to know if this is going to scale as your subscriptions volume increases? If so then yes this will scale. You can have 999 to 100k + subscriptions. :slightly_smiling_face: