Set up taxes
Configure how your online store collects tax payments from customers based on their country or region.
Note: GoDaddy doesn't file or pay your taxes. Always check with a local tax authority or tax accountant to make sure you're charging the right rates, filing correctly and meeting all your tax obligations.
Before you begin, you'll want to:
- Talk to a tax professional to make sure you're correctly collecting taxes.
- Make sure you understand the basic terms and common tax situations.
- 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.
When you're ready to set up tax collection for your online store:
- Go to your GoDaddy product page.
- Scroll down, expand Websites + Marketing and select Manage next to your site.
- On your dashboard, expand Store, and then select Settings.
- Select Tax.
- Next to Manually add taxes, select Enable.
- Once it's activated, select Add.
- On the Add Tax Rule form, select the country or region where you sell your product, and then complete the form fields that appear for that country.
- For some countries: Select a specific state or province to apply tax to that location only. All states or provinces might also be an option, which lets you apply tax to the entire country.
- (Optional) Edit the Display in checkout field. This is what's displayed for the customer when they check out.
- (Optional) Enter your tax identification number, if you have one.
- For each field under Tax Category, type a description. Under Rate, enter the rate for that category.
Note: A product tax category groups products that share the same tax rate. For example, a state may tax food items differently than home goods. Consult your tax advisor if you're unsure which rate applies to your products.If you need more categories, select Create tax category.
- If you've already accounted for taxes in the price of your product, select the My product prices already include tax checkbox.
Example: Let's say your product costs US$50.00, sales tax is 10% and shipping is US$7.00. At checkout, your customer will see that the product subtotal (price without tax) is US$50.00, tax is US$5.00, and shipping is US$7.00, for a total of US$62.00.
- If your customers also pay taxes on shipping for their region, select the Charge tax on shipping checkbox. We'll automatically apply the same rate as the product being shipped.
- To apply the location's settings, select Save.
Note: To add an additional tax rate for another country, region, state or province, repeat these steps as needed.