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How to Add Tax Registrations in Basic Tax Setup?

How to Add Tax Registrations in Basic Tax Setup?

Managing sales tax is a crucial aspect of running an online store, and our platform provides you with the tools to handle it effectively.

This guide will walk you through the steps to set up and manage sales tax using SiteGround Ecommerce.

Overview of Tax Management

Our platform offers two types of tax management:

  1. Basic Tax Setup: This is our free service that includes predefined rules and suggested rates for selected countries (USA, Canada, EU, UK, Australia) with the option to manually create rates for all other countries.
  2. Advanced Tax Setup: A paid service provided by Stripe for advanced compliance.

Note: It is your responsibility to comply with tax laws and regulations. Consider contacting a local tax professional to understand the latest legal and tax requirements in your region. 

Setting Up Tax Registrations Using Basic Tax Setup

To start collecting taxes, you need to register for the countries or states where you are legally required to do so. First, go to your Settings > Taxes

Add registrations only for the countries and states where you are legally required to collect tax and have already registered with the local tax authorities.

Specifying Input and Display of Product Prices

You need to specify in the Input and Display of Prices dropdown if the prices will be Excluding or Including. This determines whether tax is applied on top of the product prices which you enter.

Taxes settings page in SiteGround Ecommerce with “Basic Tax Setup” selected. The “Price Input and Display” dropdown is expanded, showing “Including tax” and “Excluding tax” options. A purple “New Registration” button appears in the Registrations section.

Adding a New Tax Registration

  1. Click on New Registration to open the tax registration pop-up.
Taxes settings page in SiteGround Ecommerce showing “Basic Tax Setup” selected. The “Price Input and Display” option is set to “Excluding tax” with a greyed-out Save button. A magnified highlight points to the purple “New Registration” button under the Registrations section.
  1. Select the Country from the searchable dropdown. Please note that we have predefined rates for the following countries:
    1. USA – Select States from a multi-select dropdown to indicate where you have an active tax registration.
    2. Canada – Choose whether to collect tax only at country level or optionally select Provinces such as British Columbia, Manitoba, Quebec, Saskatchewan to apply additional provincial tax rates on top of the country-wide rate for Canada.
    3. European Union (EU) Countries – Choose Registration Type:
      • Domestic (applies the domestic registration rate for cross-border sales)
      • Union One-Stop Shop (OSS) to indicate collection of tax in all EU countries with their respective country rates.
    4. United Kingdom (UK)
    5. Australia

IMPORTANT – Please note that for any other country different from the ones mentioned above, you would have to manually create the tax rates. 

Once you confirm your registration, it will be added to the Registrations table which displays the following information:

  • Location: The country or state/province.
  • Rate: Automatic or manually created rates.
  • Class: Standard, Non-taxable.
  • Actions: Option to stop tax collection.
Taxes settings page in SiteGround Ecommerce showing “Basic Tax Setup” selected. The “Price Input and Display” option is set to “Excluding tax” with a greyed-out Save button. A magnified highlight points to the purple “New Registration” button under the Registrations section.

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