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Taxes not showing up at checkout for online store

I have set up the tax rates for my square website, as well as item options. Taxes are not showing in checkout.

 

Any suggestions how to fix? ThanksScreen Shot 2020-11-19 at 8.32.41 AM.png?

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Hi @UAKCTUL 👋

 

Just wanted to jump on hear and provide a bit more context. Online stores should only charge tax to a state IF you have a business presence (nexus) in that state. i.e. a physical address such as a warehouse or office. If you do not have a nexus for the state you are shipping to, you should not be charging taxes in that state. I highly recommend using the Automatic Tax Calculator for US states as that information is updated consistently to be aligned with current tax rules. 

 

I also found this 2023 Tax Preparedness pdf guide from Tax Jar, and linked you to the page where they explain a nexus more thoroughly. 😊

 

Hope this helps you out! 

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Thank you so much! It worked!

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No problem! Glad it help, I would bookmark this just in case it happens again and you forgot how to do it.

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The exact same thing is happening to me.

 Store name Salon L and Boutique

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If you haven't read Greatplainsvtg comment in this thread, they explained how to do it.

 

 

 

From your Square Online page, go to Settings and then Sales Tax. When you create a rate, DO NOT select "Automatically Calculate Taxes". Instead, click Select States and then click the box next to States to select all of them. Then click save and it should calculate sales tax for any state you're shipping to.

 

 

 

Not sure why Square would only calculate taxes for customers in the state your business resides in, but this solved the problem for our website.

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I am having this problem to. I went to my site https://urbanartifactskc.square.site

and picked an item, entered all the purchasing info and taxes are not showing up. I have taxes set up but I can't figure out why they aren't adding or even showing a tax amount during checkout. Please help. 

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If you haven't read Greatplainsvtg comment in this thread, they explained how to do it.

 

 

From your Square Online page, go to Settings and then Sales Tax. When you create a rate, DO NOT select "Automatically Calculate Taxes". Instead, click Select States and then click the box next to States to select all of them. Then click save and it should calculate sales tax for any state you're shipping to.

 

 

Not sure why Square would only calculate taxes for customers in the state your business resides in, but this solved the problem for our website.

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Yeah I had "Automatically Calculate Taxes" selected. I will try the individual states and see if that fixes it for me! Thank you for your response!

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Square Community Moderator

Best Answer

Hi @UAKCTUL 👋

 

Just wanted to jump on hear and provide a bit more context. Online stores should only charge tax to a state IF you have a business presence (nexus) in that state. i.e. a physical address such as a warehouse or office. If you do not have a nexus for the state you are shipping to, you should not be charging taxes in that state. I highly recommend using the Automatic Tax Calculator for US states as that information is updated consistently to be aligned with current tax rules. 

 

I also found this 2023 Tax Preparedness pdf guide from Tax Jar, and linked you to the page where they explain a nexus more thoroughly. 😊

 

Hope this helps you out! 

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Square Champion

Actually that’s not the case any longer. It got changed back in 2018 with the Supreme Court ruling on South Dakota vs Wayfair. Nexus went away and most states have set threshold of dollar amount / number of transactions. It’s gotten very complicated to figure out

Changes in Internet Sales Tax Rates by State 2022

Internet Sales Tax Rates were a product of the 2018 Supreme Court Wayfair ruling. It required out-of-state sellers to collect sales taxes from their in-state consumers. Three years since the mandate and with the COVID-19 pandemic happening, the 2018 ruling is getting amended to accommodate the fairness for small online businesses. 

The changes focus on abolishing the economic nexus imposed on all online sellers. This development means that small retailers are no longer required to pay sales taxes based on the number of units they sell. Instead, sales tax is required when sales exceed the amount threshold. 

Economic Nexus Legislation 

As mentioned earlier, in June 2018, the Supreme Court ruled in favor of the state in South Dakota v. Wayfair, Inc. The new law allowed South Dakota to impose sales taxes on remote purchases. Before South Dakota v. Wayfair, the state could only enforce tax collection on businesses with a physical location in the state. This law includes brick-and-mortar establishments as well as remote workers. 

 

Steve Green
Mountain Vapors
www.mountainvapors.com
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Square Community Moderator

Thanks for sharing this information, @UAKCTUL 

 

Are you located in South Dakota, and are you familiar with the individual state thresholds? I ask because I'm assuming the automatic tax calculator will take this into consideration, however, I am not familiar with each states' rule.

 

Square/Weebly developers consult with our legal department to make sure the automatic tax calculator is always current and up to date. Changes are made to the calculator when needed. 

 

I can try to escalate this to the team if you know of a particular state that is not calculating taxes correctly based on the threshold.

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Hi, sales tax is not working on website. I have lost so much money in taxes from this.

https://scents-by-sadie.square.site 

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Square Community Moderator

Hello, @mercedeshise  Sales tax is only added when qualifying zip codes are added upon checking out. Have you tested with your configured Sales Taxes?

JJ
Community Moderator, Square
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My account is not charging taxes as either. I have been al over google and can not seem to find the answer. 

www.valajodesigns.com

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I am getting the same problem here. I had an order come in but the website didn't charge the sales tax!!!

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Can someone please help me!! My tax is not showing up on my website I have did all this things and its still not showing up. My site is called Caliah Simone. 

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Square Community Moderator

Hello @Mdixon I am sorry you are having issues with your sales tax on your website. I just want to get a better understanding of what is occurring. How did you create the sales tax? Please walk me through the steps you used to create it. Is the tax not being charged at checkout? 

MayaP
Square Community Moderator
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My friend is having the same issue. Here is his site. Doesn't work with shipping address and he said its set up correctly.

 

https://hansonartstudiollc.square.site/s/cart

 

Please help! Thank you!

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Square Community Moderator

Hello, -Welcome to the Seller Community! 

 

We appreciate your bringing this to our attention. We’d be happy to help your friend out with the issues they are experiencing. Please feel free to let your friend know they can contact us at any time to take a closer look via our Seller Community or directly to our Support center. For security purposes, we are not able to look into a Seller account that is not yours, we also need additional information that is account specific. 

 

Thank you. 


 

Sayra
Community Moderator, Square // Moderadora de la Comunidad, Square
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I just launched my online page and I got 18 orders, and only like 3 of them charged sales tax. I’ve followed all the instructions, not sure why sales tax isn’t being charged. 

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I'm having the same issue. Does anyone have the solve for this?

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I am having this same issue. Is there anyone that can assist.

 

website is 

r-cubedshops.square.site

 

 

I am also having an issue with an item appearing on my website that was deleted from my item library. Although it was deleted from the item library, it is still showing online. I've looked everywhere for it, but I cannot find it anywhere else to delete. 

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