Does Squarespace Pay Sales Tax?

As an e-commerce business, Squarespace is required to pay sales tax in every state where it has what’s called “nexus.”

Nexus is a legal term that describes the presence of a business in a state. There are two types of nexus: physical and economic.

Physical nexus means having a physical presence in a state, such as having an office, warehouse, or retail store. Economic nexus means having an economic presence in a state, such as selling products to customers in the state or having affiliates in the state.

PRO TIP: If you are thinking about using Squarespace to sell products online, be aware that Squarespace does not pay sales tax on behalf of its users. This means that it is the responsibility of the user to pay sales tax on any products sold through Squarespace. Failure to do so could result in penalties and interest charges from the IRS.

Squarespace has nexus in many states because it sells products to customers located in those states. The company also has affiliates in some states.

When a company has nexus in a state, it is required to collect and remit sales tax on behalf of its customers. The amount of sales tax that Squarespace collects and remits varies from state to state.

Conclusion: Yes, Squarespace pays sales tax in every state where it has nexus.

Drew Clemente