All About Taxes
Automatic tax calculations require the Business plan or better.
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.
Unlike brick and mortar shops, taxes for online commerce can be tricky since you may receive orders from many locations.
The good news is that we’ve built a robust tool to help you set up and manage your tax settings. And if you’re located in and delivering to the United States, we provide an automatic US tax calculator to make it even easier!
The Weebly automatic tax calculator will charge US tax based on all shop addresses you’ve entered and where you deliver an order to. For example, let’s say your physical shop is in California, but you dispatch orders from a location in Arizona. The automatic tax calculator will add rates for both Arizona and California. If you sell and dispatch from the same location, then you’ll only charge tax for orders going to that state. The most important thing to remember about US taxes is that you only need to collect them if you have a presence in the state that you are delivering an order to. If you don’t, you don’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 shop 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 by the customer, local sales tax will be added accordingly.
Sales Tax for Canada
If you’re located in and deliver to Canada, Weebly pre-populates the Canadian country tax rate and then any additional, compound or replacement tax charged by the destination province or territory. For example, if an order is shipping to British Columbia, an extra 7% is added to the country’s 5% tax rate. You can edit and override any of the pre-set Canadian tax rates, but they cannot be deleted.
Sales Tax for Other Countries
For locations outside the United States and Canada, you’ll need to add the tax rates manually.