As an ecommerce platform, Squarespace is required to collect sales tax on behalf of its merchants in certain states. The states in which Squarespace collects sales tax are: Arkansas, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Vermont, Washington and Wisconsin.
If you are a merchant selling products through Squarespace and your business is based in one of the states listed above (or you have nexus in one of those states), you are responsible for remitting the appropriate sales tax to Squarespace. This means that you will need to ensure that you have registered your business with the state and have obtained a sales tax permit.
You will also need to provide Squarespace with your permit number so that we can properly remit the taxes you collect to the state.
If you are not based in one of the states listed above but your customers are located in those states, you may still be required to collect and remit sales tax to Squarespace. This is because many states have what is known as a “use tax” which is essentially a tax on purchases made from out-of-state retailers.
The states with a use tax are: Alabama, Arizona*, California*, Colorado*, Connecticut*, Florida*, Georgia*, Hawaii*, Idaho*, Illinois*, Indiana*, Iowa*, Kansas*, Kentucky*, Louisiana*, Maine*, Maryland*, Massachusetts*, Michigan*, Minnesota * Mississippi * Missouri * Montana * Nebraska * Nevada * New Hampshire * New Jersey * New Mexico * New York * North Carolina * North Dakota * Ohio * Oklahoma * Pennsylvania* Rhode Island* South Carolina* South Dakota* Tennessee* Texas* Utah* Vermont* Virginia* Washington* West Virginia* Wisconsin* Wyoming*.
If you have customers located in any of the states with a use tax and your business is not based in that state (or you do not have nexus in that state), you may be required to collect and remit the use tax to Squarespace. This means that you will need to register your business with the state and obtain a use tax permit. You will also need to provide Squarespace with your permit number so that we can properly remit the taxes you collect to the state.
Conclusion: Does Squarespace Charge Sales Tax? Yes – If your business is based or has customers located in any of the following states where there is either a sales or use tax: Arkansas; Colorado; Connecticut; Florida; Georgia; Hawaii; Illinois; Indiana; Iowa; Kentucky; Louisiana; Maine; Maryland; Massachusetts; Michigan; Minnesota; Nevada; New Jersey; New YorkNorth Carolina ; Ohio ; Oklahoma ; Pennsylvania ; Rhode Island ; South Carolina ; Tennessee ; Texas ; Vermont ; Washington or Wisconsin..