Jump to content

Tax/Free Shipping Loophole

Recommended Posts

Hi, there is a serious loophole that I need to know when you'll fix this. I've had a couple of discussions with your technical department with the acknowledgment that this is a loophole. 

I need some forecast of when it will be corrected.

To rehash the problem. When setting up the taxes, each area has their designated tax amounts. When doing free shipping or in my case free pick-up, the taxes should be based on the local taxes, not the billing address of the customer. Savvy customers are discovering they can avoid the local tax amount if they have a credit card in a jurisdiction that is outside of our selling area, selecting free shipping, pick-up, and not being charged local taxes. 

We are losing revenue because now we have to remit the tax for the unforseen loophole.

I was told that this is something that would be addressed in the near future. I have had another transaction exploiting this loophole and need to know when Squarespace might have this resolved.

Link to comment
  • Replies 1
  • Views 920
  • Created
  • Last Reply

Taxes should be set as default tax amount, and the other options should be set as exemptions.  This would be the easiest way to resolve the issue and loophole. When setting up taxes, in the commerce section, there should be an option to set up 'default' taxes collected. Then the Add Country option would be overrides and exemptions where the tax amount is set based on the shipping address.

I believe this is the simplest way to resolve this. I don't think it would be a major recoding on your side of things, and it would lock down this loophole.

Link to comment


This topic is now archived and is closed to further replies.

  • Create New...

Squarespace Webinars

Free online sessions where you’ll learn the basics and refine your Squarespace skills.

Hire a Designer

Stand out online with the help of an experienced designer or developer.