Subtract shapes

The Subtract Shapes tool performs a Boolean subtraction of the lead selection shape from all other selected shapes. Click Shapes > Subtract Shapes in the main menu. Press Shift while selecting a different shape to change the lead selection.

Overlapping shapes.

Overlapping shapes

Selected shapes with the rectangle as the lead selection.

Shapes selected

Shapes after subtracting the rectangle from the square.

Shapes after subtraction

Shapes moved away from each other.

Shapes moved away from each other

Note:
This tool works only with planar shapes.