My online store does not charge taxes when someone from out of states orders

I am having issues with my online store not charging taxes when a customer orders from out of state. I have tried looking through the post but they are from years ago can someone help me please.

 

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Square Champion

@deleonck Welcome to the community. On Square Online, taxes for out-of-state orders won’t be charged unless you’ve explicitly set up a tax rate for those locations — Square doesn’t auto-collect sales tax everywhere by default. If you sell through Square Online, some states may require the platform to collect/remit taxes for you, but Square is not a marketplace facilitator — so you must set your own tax rates.

 

If you want to collect taxes for every state you would need to do this.

1. Go to your Square Dashboard → Items → Sales Taxes.
2. Click Create Tax (or edit an existing one).
3. In Tax Application, choose:
• “Order location” if you want taxes based on where you’re shipping from, OR
• “Buyer location” to tax based on the customer’s shipping address.
4. Add the states (and rates) you’re required to collect in.
• If you only have a nexus in your home state, you legally can’t charge tax outside it.
• If you do have nexus in other states, you must enter each state’s rate.
 
There is a company called Avalara that will handle it for you for a fee, I would check to see if they are compatible with square.
 

 

 

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Square Community Moderator

Hi there, @deleonck!

 

Thank you for bringing this up, and we recommend that you take a look at what @rtfulk recommended. If you are continuing to face issues after trying those troubleshooting steps, please let us know!

 

Also, I noticed that this is your first post so I wanted to say, welcome to the Square Community! 🥳 We are so happy to have you here. 

Ellie
Community Moderator, Square
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