Manual tax setup in Squarespace helps you apply specific tax rates for different locations. Here's how to configure it properly:

Before Setting Up Tax Rates:

• Physical products: Tax based on shipping address
• Digital products/services: Tax based on billing address
• Memberships: Tax based on member's billing ZIP code
• Note: Tax rates don't apply to donations or gift cards

Adding Country Tax Rates:

1. Navigate to "Taxes" menu
2. Click "Add Tax Rate" under Manual Setup
3. Select country and state (if US)
4. Enter tax name and rate
5. Configure settings for digital items and shipping
6. Save changes

Adding Canadian Provincial Taxes:

1. Click "Add Provincial Rate"
2. Select province
3. Enter provincial tax rate
4. Configure digital items and shipping settings
5. Choose whether to display combined rate
6. Save changes

Adding US Local Tax Rates:

1. Click "Add ZIP Code"
2. Choose single ZIP code or ZIP code range
3. Enter required ZIP codes and tax rate
4. Save changes

For ZIP Code Range:

• Enter starting and ending ZIP codes
• Add applicable tax rate
• Click Apply and Save

Calculating Service and Digital Item Taxes:

1. Select existing tax rule or create new one
2. Toggle "Calculate taxes for services and digital items"
3. Adjust per location as needed

Prices Including VAT (Optional):

1. Open Taxes menu
2. Select "Included in Price"
3. Save changes

Tax Calculation Notes:

• Discounts: Tax calculated on discounted price
• Multiple taxes: Calculated separately, not combined
• Collection points: Tax based on business tax address

Important Considerations:

• Can't set different rates by product
• Can't set city-specific rates outside US/Canada
• Can't exempt specific customers from tax
• State and local tax rates combine automatically
• Removing country tax rules removes associated local rates

Given recent legal changes (South Dakota v. Wayfair, Inc.), consult a tax advisor to understand your specific obligations for online sales tax collection.

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