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Set up taxes

Set up how you collect tax payments by country or region for customer purchases. We’ve also collected some basic terms and situations about taxes in general to keep in mind.

Note: GoDaddy doesn’t file or pay your taxes. You should always check with a local tax authority or tax accountant to make sure your business is set up correctly, you charge your customers the correct tax rates, and to make sure you file and pay your taxes correctly.

Before you begin, you’ll want to:

  • Talk to a tax professional to make sure you’re correctly collecting taxes.
  • Know the tax rates for where you’re selling from (your location, the location of your stores, employees, shipping locations, etc.)
  • Know the tax rates for where your customers are located.
  • Know the tax categories for the products you’re selling.
  1. Go to your GoDaddy product page.
  2. Scroll to Websites + Marketing and select Manage next to your website or store.
  3. From your Dashboard, select Commerce and under General choose Sales Tax for both physical and digital product taxes.
  4. To change from the default (No Tax), select Add to open the Add Tax Rule window.
  5. Select a Country/Region.
  6. For some countries: Select a specific State/Province to apply tax to just that location. All States/Provinces might also be an option so you can apply tax to the entire country.
  7. If you want, edit the Display in checkout field. This is what the customer sees when they check out.
  8. Type a description for Tax category and enter the Rate for that option. Some countries, states, or provinces have a general tax. Sometimes there are also different levels of taxes on different types of products (food, goods, digital products, professional services, etc.) If you need more categories, select Create tax category to add a new line.
  9. If you’ve already accounted for taxes in the price of your product, check the box next to My product prices already include tax. For example, let’s say your product is $50, sales tax is 10%, and shipping is $7. At checkout, your customer will see that the product subtotal (price without tax) is $50.00, tax is $5.00, and shipping is $7 for a total of $62.00.
  10. Check the box next to Charge tax on shipping if your customers also pay taxes on shipping for their region. We’ll automatically apply the same rate as the product being shipped.
  11. Select Save to apply the location's settings and return to the Taxes page.
  12. Note: To add an additional tax rate for another country, region, state or province, repeat these steps as needed.

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