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.

Squarespace can automatically calculate and collect the following types of taxes:

Value Added Tax (VAT)
Goods and Services Tax (GST)
Sales Tax

If you’re selling products in the European Union (EU),Squarespace can also calculate, collect, and remit Eco-Taxes, which are taxes levied on certain products to encourage recycling.

How Does Tax Work on Squarespace?

When you set up your store on Squarespace, you’ll be asked to enter your business address and indicate whether you have a VAT number. This information is used to determine whether VAT should be applied to orders, and if so, at what rate.

PRO TIP: If you are thinking about using Squarespace to sell products or services, be aware that there are some tax implications. Depending on where you are located, you may be required to collect and remit sales tax. Additionally, if you are using Squarespace to process payments, there may be some fees associated with this service. Be sure to research the tax implications of using Squarespace before setting up your store.

If you’re based outside of the EU, you won’t be charged VAT on orders.

However, if you have customers in the EU, they may be charged VAT depending on their location. Customers in the EU will see the VAT included in their order total before they complete checkout.

What if I Have a Physical Storefront?

. If you have a physical storefront in addition to your online store—or if you’re only selling through brick-and-mortar locations—you may need to register for a Sales Tax permit. Once you have this permit, you can add your Sales Tax information to Squarespace and we’ll calculate tax accordingly.

Morgan Bash