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Understanding How Tax Works with Square + Birrdi

Birrdi integrates directly with Square for all payment processing, including how tax is calculated. It’s important to understand how Square handles tax so you know what your customers will (and won’t) see during checkout.

Updated over a month ago

How Square Handles Tax

Square allows two different tax configurations:

1. Tax Additive (Most common in the USA)

This is the default approach in the United States.

  • The base price is shown to the customer.

  • Tax is added on top during payment processing.

  • The final amount charged (base price + tax) appears on the customer’s Square receipt, not during Birrdi checkout.

2. Tax Inclusive (Common in Canada)

Many Canadian businesses prefer this option.

  • Tax is built into the price shown to the customer.

  • Square automatically calculates the tax portion in the background.

  • The customer still does not see tax broken out during Birrdi checkout, but it will appear correctly on their Square receipt.


What Customers See in Birrdi Checkout

Regardless of whether you use tax additive or tax inclusive, Birrdi does not display tax during checkout.

This is intentional and follows Square’s processing flow.

  • Customers will see the item price exactly as you’ve configured it in Birrdi.

  • Once the payment completes, Square applies tax based on your Square settings.

  • Customers can see the full tax breakdown on their Square receipt.


Where Tax Appears

  • Not in Birrdi: No tax line or breakdown is shown during online checkout.

  • Yes in Square: The receipt generated by Square will show tax added or included, depending on your configuration.


Important Notes

  • Make sure your tax settings inside Square are correct. Birrdi simply sends the item + price to Square; Square handles all tax logic.

  • If you change your tax settings in Square, the updates apply immediately to all new payments processed through Birrdi.


If you have any questions about how to configure tax inside Square, feel free to reach out — we’re happy to help.

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