Learn the basics of sales tax and how Brikl accounts for different tax rules in the US, Canada, Europe, UK, Australia or New Zealand.
Brikl doesn’t file or remit your sales taxes for you, but it does make it easy for you to set them up.
US and Canada Taxes
In the United States, the sales tax you should charge can be affected by several factors:
- The location your product is shipped from
- The location your product is shipped to
- Where you're registered to collect tax
- Item taxability
- Buyer exemptions
With Brikl, you can setup your taxes manually by state in the Brikl dashboard. Visit How to manually set up your tax rates to learn more.
You can also choose to bypass all the tax calculation complexity by using Brikl's integration with tax compliance software like TaxJar or Avalara. These integrations automate your sales tax calculations and ensure tax compliance. Refer to How to set up automatic sales tax calculations to get started with your TaxJar integration.
VAT taxes (EU and UK) and GST taxes (AU and NZ)
Value Added Tax (VAT) is a consumption tax used in many countries worldwide, including countries in Europe, Asia, Africa, and Latin America. It is applied to the purchase price of goods and services. Most items are affected by VAT, but some may be exempt or charged at a zero rate.
Goods and Services Tax (GST) is a tax applied in countries like Australia, India, Canada, New Zealand, Singapore, and Hong Kong. It works similarly to VAT as a consumption tax on goods and services.
Brikl accounts for the difference between GST and VAT by displaying the appropriate tax name on the checkout page based on the customer's location:
- When a customer is located in US or Canada, the tax line on the checkout page will display "Tax"
- When a customer is located in a country that uses GST, the tax line on the checkout page will display "GST"
- When a customer is neither located in the US, Canada, or any of the GST countries, the tax line on the checkout page will display "VAT"
To set tax rates for your products and collections, visit How to manually set your tax rates.