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.
Squarespace is a website builder and hosting platform that allows businesses to create and maintain an online presence. While Squarespace does not currently collect or remit sales tax on behalf of its customers, it is important to be aware of your responsibility as a business owner to collect and remit taxes on all taxable transactions.
If you are selling taxable goods or services through Squarespace, you will need to collect and remit sales tax to the appropriate taxing authorities. You can use Squarespace’s built-in tax settings to configure tax rates for the jurisdictions in which you do business.
To learn more about setting up taxes in Squarespace, please visit their support site.
In addition to sales tax, you may also be required to collect and remit use tax on certain purchases made for use in your business. Use tax is generally imposed on items that are purchased tax-free for resale or other business purposes but are used in a jurisdiction where they would be subject to sales tax if purchased directly from a vendor in that jurisdiction.
For more information on use tax, please consult this primer from Deloitte.
Conclusion: You are responsible for collecting and remitting both sales and use taxes as a business owner selling through Squarespace. Sales taxes are configured through Squarespace’s built-in settings, while use taxes may need to be reported separately to the appropriate taxing authorities.
