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Square Online Tax Questions

Hey Everyone,

I’m trying to set up a Square Online store and have a BOATLOAD of questions. I’ll post them on separate threads so they’re easier to answer. 

 

Sales Tax 

-Does Square automatically calculate sales tax based on where an item is going, including whether or not shipping is included in sales tax? Does the fact that I’m physically based (even though my store is online only)  in NYS affect sales tax collected in any way?

-For calculating sales tax outside the US and Canada, do I have to find and enter the current tax rate for each country listed? Because that might make my head explode.

-Does Square automatically send the collected sales tax to whoever it needs to go?

 

I sent these to Square customer service, but thought I’d see if any of you have any wisdom to share while I wait for a reply.

Thank you!

-Meg

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Square Community Moderator

Hello there and welcome to the Seller Community @StorypillarMeg

 

I noticed your posts and I have been tasked to answer them.

 

Before I begin, I would like to let you know that Square cannot (and as a consequence my answers)provide Tax advice, and you should consult a CPA or the Revenue Department of your State to understand the rules that your business should follow.

 

-Does Square automatically calculate sales tax based on where an item is going, including whether shipping is included in sales tax? Does the fact that I’m physically based (even though my store is online only) in NYS affect the sales tax collected in any way?

 

Yes, at this time Square will only charge Taxes on purchases done in the State(s) where your business is based.

 

At this time Tax

-For calculating sales tax outside the US and Canada, do I have to find and enter the current tax rate for each country listed? Because that might make my head explode.

 

Please see the statement above for Tax advice.

 

-Does Square automatically send the collected sales tax to whomever it needs to go?

 

No, at this time Tax collected is transferred to your designated bank account, and it is the Merchant's responsibility to complete all their tax liability. 

 

JJ
Community Moderator, Square
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Thanks!

-Meg

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