You might need to charge taxes on your sales, and then report and remit those taxes to the government. Set up automatic handling of common sales tax calculations here.
Brikl doesn’t file or remit your sales taxes for you, but it does make it easy for you to set them up.
EU and UK taxes (VAT)
Brikl uses default sales tax rates that you can define on a country and regional level.
Go to Dashboard > Settings > Taxes.
- If you are shipping domestically only, we recommend to set the default tax rate equal to the domestic tax rate.
- If you are shipping domestically and internationally, we recommend to set the default tax rate to 0%, and to define the list of countries you ship to, each having its specific tax rate. If a customer orders from a country that is not listed, it will default to this zero tax rate.
For example, if a customer from the United States places an order, the default tax rate will be zero.
When you set a country tax rate, it will override any regional tax rates you've setup previously. For example, if the region you want to apply tax to is Europe (EU), but a number of the countries (e.g., UK) within this region are exempt from tax, you can set up the tax rates as follows:
- EU: 21
- UK: 0
Set taxes on a product level
You can set a VAT rate for your products which will be visible to customers at checkout. This is particularly useful for products that require a different tax rate.
Go to Dashboard > Catalog > Collections, and create a new collection. Select the Tax Settings tab and define a tax rate for the products in that collection.
Setting a product-specific tax can be particularly useful for kids' products that have a 0% tax rate in a cart with multiple products with different rates. See below example (kids products have 0% tax in Ireland).
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 have two options to set tax rates:
1) Use Brikl's Taxjar integration
2) Set tax rates on a country/state level in the BRIKL Dashboard
You must select either TaxJar or BRIKL Dashboard to setup tax rates. You cannot combine both.
Brikl’s TaxJar integration allows you to benefit from precise, location-specific sales tax rates and calculations. This takes care of special taxing district levels in real-time.
Do you already have a TaxJar account and want to integrate with Brikl, or would you like to know more? For more information, contact us.
Set US and Canada tax by state
You can set tax rates on a state level for the US and Canada.
Simply go to the dashboard settings, head to ‘Tax’ then ‘Tax rates for specific countries and states’. (Dashboard > Settings > Tax)
Choose your country and state then add. Tax rates can be defined below.
Difference between GST and VAT
What is VAT?
VAT stands for Value Added Tax. Essentially, it’s a consumption tax that’s applied to the purchase price of certain goods or services. Although there are some items that are exempt from VAT or are charged at a zero rate (meaning that the government does not currently charge VAT for these items but could in the future), the price of most goods/services is affected by VAT.
What is GST?
GST stands for Goods and Services Tax. It’s a form of Value Added Tax that’s charged in countries like Australia, India, Canada, New Zealand, Singapore, and Hong Kong. It works more or less the same way as VAT in that it’s a consumption tax that’s imposed upon the costs of goods and services.
How does Brikl account for the difference between GST and VAT?
When your customer is based in a country that applies GST, the tax line in the checkout page will mention "GST".
When your customer is based in US or Canada, the tax line in the check page will mention "Tax".
When your customer is neither based in US, Canada or any of the GST countries, the tax line in the checkout page will mention "VAT".