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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.
  • It's not possible to set different tax rules based on the product. 
  • It's not possible to exempt certain customers from paying VAT.
  • 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 - Set up tax rates

Before you can enable tax-inclusive pricing, you'll need to manually add tax rates to your store.

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

Step 2 - Enable tax-inclusive pricing

Tax-inclusive pricing sets prices to include VAT, rather than add tax at checkout. When tax-inclusive pricing is enabled, everyone sees the same price regardless of where the customer is located. The amount of VAT taxes displayed at checkout changes based on the tax rates you set up. 

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.

After you set up tax rates, enable tax-inclusive pricing:

  1. In the Home menu, click Commerce.
  2. Click Taxes.
  3. Under Settings, click How tax is added.
  4. Click Include in price, then click Save


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.

  1. In the Home menu, click Commerce, then click Checkout.
  2. Scroll down and click Invoices.
  3. In the Price and Tax Details enable or disable tax options. 
  4. Click Save

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

Step 4 - Add a VAT Registration Number (optional)

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

  1. In the Home menu, click Commerce, then click Customer Notifications.
  2. Click Business settings. 
  3. 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)

To preview your invoice:

  1. In the Home menu, click Commerce, then click Customer Notifications.
  2. 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.

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