How to Manage VAT and GST on Squarespace
Setting up VAT and GST collection in Squarespace Commerce is straightforward once you know where to find the right settings. The platform handles the calculations automatically, but you'll need to configure a few key areas to ensure everything displays correctly for your customers and meets local tax requirements.
TL;DR:
- Set tax rates manually in your Squarespace store for VAT or GST collection
- Enable tax-inclusive pricing to include VAT/GST in the product prices
- Customise receipts with pre-tax prices, tax for each item, and tax breakdown
- Add your VAT registration number and confirm business location in optional settings
- Preview receipts to check everything appears correctly before going live
Setting Up Tax Rates
To start collecting VAT or GST through Squarespace Commerce, you need to manually enter your applicable tax rates:
- Navigate to your Squarespace dashboard and open the Taxes panel
- Manually input the VAT or GST rates as per your business's requirements
Always confirm your tax rates with a tax advisor to ensure compliance. Tax rates can change, and getting this wrong creates headaches later.
Enabling Tax-Inclusive Pricing
Tax-inclusive pricing simplifies how tax is presented to your customers:
- In the Taxes panel, under Settings, select 'How tax is added'
- Choose 'Include in price' and then save your settings
For example, if you sell a product at €100 including a 10% VAT, the listed price remains €100 at checkout. The system calculates €9.09 as VAT, making the item's tax-exclusive price €90.91.
Customising Receipt Details
Adjust receipt settings to align with local tax laws:
- Go to the Checkout panel and click on Receipt details
- Opt to show pre-tax prices, tax per item, net totals, and a detailed tax breakdown table
These settings help clarify the cost breakdown for your customers, ensuring transparency. Different countries have different requirements for what must appear on receipts, so check what applies to your business.
Optional Settings
Add a VAT Registration Number: In the Customer Notifications panel, under Business settings, you can add your VAT ID to appear on receipts.
Confirm Your Business Address: Verify the correct business address in the Business Information panel to ensure it appears correctly on receipts.
Preview Your Receipt: To see how your receipt will look to customers, navigate to Customise Emails in the Customer Notifications panel and preview the order emails.
FAQs
Can I set different tax rules for different products in Squarespace Commerce?
No, tax rules are applied universally across all products. If you need product-specific tax rates, you'll need to look at third-party solutions or consider a different platform.
Can I exempt specific customers from VAT in Squarespace?
Squarespace does not allow exemptions for specific customers. VAT is applied uniformly to all transactions.
Is it compulsory to include a VAT registration number?
No, it's optional but recommended if you have a VAT registration number. Some countries require it to appear on receipts, so check your local requirements.
Jargon Buster
VAT (Value Added Tax): A tax added at each stage of a product's production and distribution, visible to customers.
GST (Goods and Services Tax): Similar to VAT, applied on goods and services for domestic consumption.
Tax-Inclusive Pricing: Pricing strategy where VAT or GST is included in the displayed price, not added at checkout.
Tax Breakdown: Detailed display of tax applied per item, helping customers see tax contributions clearly.
Wrap-up
Setting up VAT and GST in Squarespace Commerce takes about 10 minutes once you have your tax rates confirmed. The key is getting the receipt formatting right for your local requirements and testing everything before you go live. Always consult with a tax professional to make sure these settings work for your specific business situation.
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