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About adding taxes

We’re not tax experts, but we’ve collected some basic terms and situations about taxes in general that you might find helpful.

Note: This information isn't intended to establish a relationship or advise you on taxes. It's always a good idea to consult a tax professional to learn more.

Some taxes, like sales taxes, value added tax (VAT) and goods and services tax (GST), are based on the relationship or connection between where you are, where you sell and what your customers buy. This relationship is called a nexus.

  • You’ll pay taxes based on where you, your business and your employees are located.
  • You’ll pay taxes based on where your customers are located, whether it’s the same as you or different than you.
  • Taxes can also be different for different categories of products and services. Physical products, digital products, food, handmade crafts, vacation rentals: all might have different rates.
  • Locations also might have a minimum limit or threshold by sales volume (money collected) or number of transactions before you’re required to pay a tax there.

Someone who sells in-person to customers locally will collect different taxes than someone who sells online to a different state or province. Some people may even sell to customers in other countries.

Note: Because there are so many variations that make each situation unique, we recommend you find a tax professional that will work with you and the exact circumstances that apply to you and your business.

We also recommend going directly to your government tax-collecting agency’s website for specific tax rules, such as the United States Internal Revenue Service (IRS) or one of the European Union National Tax sites. Many areas and countries also have small business associations or alliances that provide help.

Start by setting up taxes. When you’re ready to calculate your taxes, download your online store orders to see a list of all your sales in different states, provinces, and countries. Then you can go through your list and calculate how much you sold and how many transactions you had in each affected area.

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.

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