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Collecting VAT or GST

You can collect VAT or GST through Squarespace Commerce by setting tax rates, enabling tax-inclusive pricing, and customizing price and tax details for your invoice.

Note: This guide is available as a resource, but should not be construed or relied upon in any way as legal or accounting advice. Per our Terms of Service, Squarespace doesn't provide advice or recommendations on any laws or requirements applicable to your site or business. If you have questions about these laws, you can consult with a tax advisor or attorney.

Before you begin

  • This guide covers charging VAT through Squarespace Commerce. For information about VAT collected for your Squarespace subscriptions, visit VAT and Squarespace billing.
  • Some settings may be enabled by default based on the country you entered at signup. You can follow the steps in this guide to make any changes.

Step 1 - Enable tax-inclusive pricing

Tax-inclusive pricing sets prices to include VAT, rather than add tax at checkout.

For example, if a product costs €120 and includes tax (at a VAT rate of 20%) customers will see the €120 price in your store. In order confirmation emails, the price is broken down into the €100 net product price and €20 VAT charge.

To enable this:

  1. In the Home Menu, click Settings.
  2. Click Taxes.
  3. Click the .
  4. Check Tax is Included in Product Prices.
  5. Click Save.

Step 2 - Set a tax rate

In the Taxes panel, click Add Country.

Select a country from the drop-down menu, then add a Tax Name and Tax Rate. You can also apply this rate to shipping charges and service products. Click Save.

Note: If you have questions about your tax rates, please consult with your tax advisor.

Step 3 - Edit invoice details

You can customize the information that appears in your order invoices—including order confirmation emails and printable order summaries—based on your local requirements.

Note: If you have questions about your local formatting requirements, consult with your tax advisor. Squarespace can't provide you with tax advice.

In the Home Menu, click Settings, then click Checkout.

CheckoutCommerce.jpg

Scroll down and click Invoices.

In the Price and Tax Details panel you can customize your invoice by enabling the following options:

  • Show Pre-Tax Price with item Price - Displays pre- and post-tax prices for each item.
  • Show Tax for Each Item - Displays tax rate and amount charged for each item.
  • Show Pre-Tax Order Total - Displays sum of item and shipping totals before tax (Net Total).
  • Show a Tax Breakdown Table - Displays a table below the Order Summary of tax rates and amounts charged.

Step 4 - Add a VAT Registration Number (optional)

If you have a VAT Registration Number, you can enter it in the Business Information panel. This number will appear on your invoices.

In the Home Menu, click Settings, and then click Business Information. Add your VAT ID to the Tax Registration ID (Optional) field.

Step 5 - Confirm your location (optional)

Your Business Address will also appear on invoices. To confirm your location is correct, scroll down in the Business Information panel to Business Address.

Step 6 - Preview your invoice (optional)

In the Home Menu, click Settings, then click Notifications.

NotificationsCommerce.jpg

Scroll down to Customize Emails, and click Order Emails. On the right, you'll see a preview of your order confirmation email. The Order Summary includes a tax breakdown based on your invoice format.

FAQ

Can I exempt customers from paying VAT?

No. VAT exemption isn't available for Squarespace Commerce at this time.

How do I charge customers in a country with a different VAT rate?

When tax-inclusive pricing is enabled, everyone sees the same price regardless of where the customer is located. Only the amount of VAT taxes displayed at checkout changes. Squarespace VAT collection is ideal for stores primarily selling to customers in a single country.

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Collecting VAT or GST