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Square Online Tax Settings

DISCLAIMER: Tax compliance is your responsibility. We do not guarantee the applicability or accuracy of our tax tools. If you have any questions about your tax obligations, you should consult a professional tax advisor.

Overview

Note: Tax settings from your Square account are included in your items and won’t need to be added on top of the item as a tax rule.

Taxes for online sales can be tricky since you may receive orders from many locations.The tax settings for your online store make it easy to set up and manage sales tax. And if you’re located in Australia, we provide an automatic tax calculator to make it even easier.

The automatic tax calculator will charge AUS sales tax based on all store addresses you’ve entered and where you ship an order to. For example, let’s say your physical store is in Victoria, but you ship orders from a location in the North Island, New Zealand. The automatic tax calculator will add rates for both Victoria and North Island. If you sell and ship from the same location, then you’ll only charge tax for orders going to that state.

The most important thing to remember about AUS taxes is that you only need to collect them if you have a presence in the state that you are shipping an order to. If you don’t, then you won’t collect taxes.

A Closer Look At How the Automatic Tax Calculator Works

When you receive an order, the automatic tax calculator first checks to see if your store has a presence in the state you’ll be shipping to. This is determined based on the store addresses you’ve added:

Store address: configured on the Store Setup page
Shipping address: configured on the Shipping page
Other locations: configured on the Taxes page

The calculator checks each location and if you don’t have a presence in the state you’re shipping to, no taxes are charged.

Note: When a customer has different billing and shipping addresses, only the shipping address matters in terms of charging tax. For orders that will be picked up in-store or delivered to the customer, local sales tax will be added accordingly.

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