Setting Up Manual Tax Rates in Squarespace for Your Business

How to Set Up Manual Tax Rates on Squarespace

TL;DR:

• You can manually configure tax rates based on location: countries, Canadian provinces, or US states and ZIP codes
• Squarespace allows you to set different tax obligations for services, digital products, and shipping
• Manual tax settings don't allow product-specific rates or customer exemptions currently
• You can switch between automated and manual tax settings, but not use both at once

Step-by-Step Guide to Setting Up Manual Tax Rates

Add Country Tax Rates

To apply tax rates country by country:

1. Navigate to the Taxes panel in your Squarespace dashboard
2. Click 'Add Rate' under Manual Setup if you're setting up for the first time or '+' to add new rates
3. Choose the country from the dropdown menu. For the US, select the state you want to configure afterward
4. Include tax names and rates visible at checkout
5. Activate toggles if taxing services/digital products or shipping is required
6. Save your settings to apply

Add Canadian Province Tax Rates

For Canadian provinces:

1. In the Taxes panel, select 'Add Province Rate'
2. Pick the province and set its specific sales tax rate, which adds to the country rate
3. Adjust settings for taxing services, digital goods, and shipping if necessary
4. Save the settings

Establish Local Tax Rates in the United States

Setting local taxes within a state:

Get the Squarespace Template Builder, with over 300 unique section designs.

1. Choose 'Add Zip Code Rate' in the Taxes panel
2. Specify whether the tax rate applies to a single ZIP code or a range
3. Combine state and local tax rates where applicable
4. Save your configurations

Calculating Taxes at Checkout

• Digital Products: Tax based on the billing postal code linked to the payment method
• Services and Memberships: Similar to digital products, taxes are based on billing postal codes
• Physical Products: Taxes are determined by the shipping address of the customer

FAQs

Can I set different tax rates for different products on Squarespace?

Currently, Squarespace doesn't support separate tax rates for different product types. They are planning to introduce this feature with automated taxes.

Is it possible to exempt certain customers from sales tax on Squarespace?

No, Squarespace doesn't currently provide the option to exempt individual customers from sales tax.

Can I use both automated and manual tax configurations at the same time?

Squarespace requires you to choose between automated or manual tax settings but saves your configurations for easy switching.

Get your hands on the best SEO tool for Squarespace. Get started for free.

Jargon Buster

• Manual Tax Setup: Configuring tax rates manually for specific locations
• Automated Taxes: Squarespace system automatically calculates tax based on set regulations and customer location
• Tax Exemption: Not charging selected customers or transactions sales tax
• Billing Postal Code: The postal address associated with a customer's payment method, used to determine tax obligations

Wrap-up

Setting up manual tax rates in Squarespace gives you granular control over how much tax you collect and from whom, based on various global locations. While the platform offers flexibility in tax configuration, remember that current limitations include the inability to set product-specific rates or exempt specific customers. Keep an eye on upcoming features that may introduce more sophisticated tax handling capabilities. For any detailed queries or legal clarifications, always consider consulting with a tax professional.

Ready to take your Squarespace skills to the next level? Join Pixelhaze Academy for expert tutorials and hands-on support.