Can Square Tag Sales by GST Applicable and No-GST Applicable?

Mulga Bill on 02/08/2022 - 22:35

A family members runs a second hand furniture/bric-a-brac & new giftware shop and this year will need to register for GST. They have the square Terminal and looking to upgrade to the Square Stand. Customers will come to the counter with mixture of items and they want to be able to tag sales by GST applicable (giftware) and GST not-applicable (second hand/bric-a-brac). Does the square software allow this? I assume it allows individual items to be tagged with price/GST status etc but this shop does not want to manage to that fine detail.

It reminds me of when I volunteered for local sport canteen where we pressed a cash register key before a drink sale and another before a food sale to keep track of them separately, if that makes more sense?

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Comments

  • jjjaar on 02/08/2022 - 22:43

    Square does let you put items into categories and each category can be GST/no GST…

    But it sounds like they don’t want to build a data base of items and that they are they just manually inputting the price for every sale?

    • Mulga Bill on 02/08/2022 - 23:21

      Yes, they don't use barcodes or anything they just add it up on old style cash register and input amount into Square terminal for EFTPOS payment at the moment.

      Do you know if they can click "GST item" then input a price for the first product sale, click "non-GST item" then input price for next product sale and so on?

      • jjjaar on 02/08/2022 - 23:43

        I only have the square reader but you don’t seem to be able to easily select gst or not with manual prices.

        One thing they could do if their prices are consistent and they don’t have heaps of them is have a whole bunch of gst items preloaded at those prices (eg itrm 1 is $1, item 2 is $2, etc) and do the same with non gst and then organise them into the two categories and use those preset prices/items rather than manual prices.

        They would just need to make sure they set it up without adding in inventory numbers otherwise if they click on the GST $1 item, the system would think it’s sold and it’ll go from the options.

      • apsilon on 03/08/2022 - 06:38

        What I've done in the past (IIRC) setting stores up in Square is if they don't have a barcode and they don't want to print and stick them on, I set up a Brand X uncoded item and then manually enter the price. You can set an item as having GST or not so you should be able to simply enter a GST Uncoded and Non GST Uncoded or whatever you want to call them where one has GST turned on and the other doesn't. Only thing you'll need to test is if it adds GST to the price you enter or you need to add it when you entering the price as I've never worked with a store that doesn't have GST on all items.

        Seems a bit pointless going to the trouble of setting it all up, not creating a database of products and not barcoding everything. Probably a lot cheaper in the long run to just buy and use an old fashion cash register.

  • Mulga Bill on 02/08/2022 - 23:25

    another thought - supermarkets can override prices if they scan wrong…could they have 2 "products" loaded, one that attracts GST and one that doesn't and just override the price each time?

  • freefall101 on 03/08/2022 - 09:17
    +1

    Why don't they need to charge GST on second hand items? If they're running a business selling second hand goods they need to collect GST (and there's a weird accounting method for getting a credit back if what they're selling doesn't have GST on it when they purchased it)

    • Mulga Bill on 03/08/2022 - 09:29

      There is no GST on second hand goods. When they buy it from a garage sale for example there is no GST; when they sell it on there is no GST.

      It is only the new giftware they sell that attracts GST. I believe they need to find a solution to keep track of the GST sales for their BAS. The giftware is not a consistent range of products so trying to avoid having a database of products they have to keep adding to and the second hand goods price is generally negotiable so would be difficult too if they have to have set prices loaded…I am hoping there is a way to change a price at the checkout?

      • freefall101 on 03/08/2022 - 10:05
        +1

        When you buy it from a garage sale they're not running a business and are unlikely to have over $75k of turnover.

        If you buy a used car on gumtree it doesn't have GST. If you buy a used car from a dealer it does have GST.

        I'd probably talk to an accountant if I was you.

        • Mulga Bill on 03/08/2022 - 11:22

          Interesting, I suppose that's up to their accountant to sort out…for now they just need to separate the sales as GST/non-GST "on the fly" to keep track of them

  • offerd on 03/08/2022 - 09:34
    +1

    This is a super complex tax area:

    https://www.ato.gov.au/business/gst/in-detail/rules-for-spec….

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