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How Do Taxes Work on Squarespace?

Last updated on October 1, 2022 @ 6:55 am

Overview

When you sell products or services through Squarespace Commerce, you’re responsible for collecting and remitting taxes to the appropriate tax authorities. Depending on your business and location, you may need to collect and remit VAT, GST, state sales tax, city sales tax, or other types of taxes. This article provides an overview of how taxes work with Squarespace Commerce.

Configuring taxes

You can configure tax settings from the Commerce > Taxes page of your site’s dashboard. To learn more, visit Configuring taxes.

PRO TIP: If you are thinking about using Squarespace to create a website for your business, be aware that there are some potential tax implications. While Squarespace is easy to use and provides a lot of flexibility when it comes to creating a website, there are some things to keep in mind when it comes to taxes.

For example, if you sell products on your Squarespace website, you will need to collect and remit sales tax to the appropriate state and local taxing authorities. This can be a complex process, so be sure to research the requirements in your state before moving forward.

In addition, if you use Squarespace to host your business website, you may be required to pay taxes on the income you earn from your website. This is typically done through self-employment taxes, and the amount you owe will depend on several factors, including how much income you earn from your website and what state you live in.

While there are some potential tax implications to using Squarespace for your business website, overall it is still a great platform to use. Just be sure to do your research beforehand so you are prepared and compliant with all applicable tax laws.

Calculating taxes

Squarespace Commerce calculates taxes based on the following:

  • The customer’s shipping address. Taxes are calculated based on the customer’s shipping address. If the customer doesn’t provide a shipping address, we’ll use the billing address instead.
  • The product’s taxable status and tax category. You can configure these settings from the Product > Pricing & Discounts page.
  • The site’s tax settings.

    You can configure these settings from the Commerce > Taxes page.

VAT and GST for digital goods

  • If you sell digital goods in the European Union (EU), Norway, Iceland, or Liechtenstein, you may need to collect Value Added Tax (VAT).
  • If you sell digital goods in Australia, New Zealand, or Japan, you may need to collect Goods and Services Tax (GST).

Note: (VAT and GST are similar taxes that are sometimes called by different names.) If you’re registered for VAT or GST in one of these countries, we’ll automatically calculate and add VAT or GST to your customers’ orders at checkout.

Learn more about VAT and GST for digital goods
Learn more about VAT and GST for digital goods

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9 Related Question Answers Found

How Does Tax Work on Squarespace?

As a business owner, it’s important to understand how taxes work on Squarespace. By default, Squarespace handles all taxes for you. This means that when a customer purchases a product from your store, Squarespace collects and remits the appropriate taxes to the government on your behalf.

How Do I Set Up Taxes on Squarespace?

As a business owner, you’re required to pay taxes on your earnings. If you’re using Squarespace to sell products or services, you’ll need to set up taxes in your account so that you can comply with the law. Fortunately, Squarespace makes it easy to collect and remit taxes.

Does Squarespace Calculate Taxes?

When you set up your Squarespace account, you have the option to include tax-calculation features. This can save you a lot of time and money come tax season, but it’s important to understand how it works before you enable it. Here’s everything you need to know about Squarespace and taxes.

Do You Have to Collect Taxes on Squarespace?

As a business owner, you are responsible for collecting and remitting sales tax on the goods and services you sell. This is true whether you sell online, in-person, or through a third-party marketplace. You are also required to collect and remit use tax on taxable items purchased for use in your business that were not taxed at the time of purchase.

Do I Have to Charge Tax on Squarespace?

If you’re running a business, you need to charge tax on your products and services. This includes digital products and services, like those offered by Squarespace. But how do you know if you need to charge tax on Squarespace?

What Does TaxJar Do With Squarespace?

TaxJar is a service that provides sales tax automation for eCommerce businesses. With TaxJar, businesses can connect their shopping carts and marketplaces to TaxJar, and then TaxJar will automatically calculate, file and remit the appropriate sales taxes to the state governments on behalf of the business. TaxJar also offers a suite of tools to help businesses manage their sales tax obligations, including a sales tax calculator, a sales tax reporting tool and a sales tax exemption certificate management system.

Do You Have to Pay Taxes on Squarespace?

As a business owner, you are required to pay taxes on your earnings. This includes any income you receive from Squarespace, whether it is from ads, selling products, or services. Depending on your location and tax laws, you may also be required to pay VAT or GST.

Does Squarespace calculate sales tax?

When creating a new account on Squarespace, you are prompted to enter your state’s sales tax information. However, is Squarespace actually calculating and charging sales tax on your behalf? According to Squarespace’s website, the company does not charge or collect sales tax on behalf of its users.

Does Squarespace Send Tax Forms?

As a business owner, you’re responsible for filing your own taxes. This means that you’ll need to track your income and expenses throughout the year, and then file a return with the IRS come tax time. Depending on the structure of your business, you may also need to file state and local taxes.
Dale Leydon

Dale Leydon

Sysadmin turned Javascript developer. Owner of 20+ apps graveyard, and a couple of successful ones.