Learn about why location-based sales tax exists, and why it might be included on your paid Webflow plans.
In the recent past, software subscription and digital services purchases like Webflow were not subject to taxes. This has changed, and some locales now require that a sales and use tax or other indirect taxes, such as VAT (Value Added Tax) or GST (goods and services tax) be charged on these services. Because Webflow charges taxes based on your billing location, it’s important that your billing address is accurate and up to date.
In this lesson, you’ll learn:
To accurately collect the legally obligated amount of sales taxes for subscriptions, Webflow partners with Avalara, a leading sales tax collection platform. If we are legally required to collect tax for your location, Webflow looks up your tax liability based on your transaction’s billing address, and charges the rate required by your local jurisdiction.
It’s important to keep in mind that local laws can change. If you are not charged a location-based sales tax now, it doesn’t mean your local jurisdiction’s tax requirements won’t change in the future.
If your billing address results in a location-based tax, taxes will be collected on account plans, team plans, and site plans only. (Currently, sales tax will not be charged on template purchases, overages, etc.)
We are gradually rolling out sales tax on new customers’ Webflow subscriptions and existing customers’ subscriptions.
For existing customer subscriptions, the change on your account will happen automatically and you will be notified in advance via email if you need to update your billing address, VAT Identification Number, or your tax exempt status. If you do need to make any of these updates, you can go to your Individual account or Team's Account settings to make those changes.
New user subscriptions will be taxed in specific US locations.
Currently, we are assessing sales tax for a portion of new user subscriptions in the following US locations:
You can also reference a list of countries where a VAT ID is supported.
You can see the details of your charges (including whether tax was charged) by reviewing your invoices.
Read more about how to access your invoices from the Dashboard.
To ensure tax accuracy on your Webflow subscriptions, your billing address needs to be up to date. You can make changes to your billing address in your individual or team account:
A Value Added Tax Identification Number (VAT ID) is used to identify businesses for the collection of taxes for certain countries (including the European Union). If you have a VAT ID, when you provide it to Webflow, you establish a business-to-business relationship between your organization and Webflow. This business-to-business status, along with your business’s location, determines whether Webflow will charge VAT on purchases and subscriptions.
You can add or update your VAT ID in your individual or team account:
You can add or update your individual account’s VAT ID in either of 2 ways:
If your billing address already indicates that you are in a VAT ID supported country, you will automatically see a VAT Number field in your account’s Dashboard.
To add your VAT ID to this field:
After you’ve saved and submitted your VAT, it will be validated via Stripe (Webflow’s payment processor), and will appear in the Additional account billing info section of the Billing tab in your Account settings. Your VAT ID will also automatically be added to your plan’s invoices. If there are any validation issues with your VAT ID, you will be notified in your Webflow Dashboard and by email.
You can add or update your team account’s VAT ID in either of 2 ways:
If your team’s billing address already indicates that you are in a VAT ID supported country, you will automatically see a VAT Number field in your team account’s Dashboard.
To add your VAT ID to this field:
After you’ve saved and submitted your VAT, it will be validated via Stripe (Webflow’s payment processor), and will appear in the Additional info section of your Team’s Settings tab. Your VAT ID will also automatically be added to your plan’s invoices. If there are any validation issues with your VAT ID, you will be notified in your Webflow Dashboard and by email.
A VAT ID is supported in the following countries:
If your billing address is in a taxable location, and if your company is tax exempt, you can request sales tax exemption by contacting our customer support team. In your support request, you will need to include:
Webflow’s address is:
398 11th Street, 2nd Floor
San Francisco, CA 94103
Note: 501(c)(3) status from the IRS is not sufficient proof of state or city sales tax exemption.
If your tax exempt status has been confirmed by our customer support team, you can view your tax exempt designation in your Dashboard in 1 of 2 ways, depending on whether the exemption is for an individual or team account.
To see your individual account’s tax exemption:
To see your team account’s tax exemption:
Good to know: The Sales tax exemption field is in place to confirm that your tax exempt status is on file with Webflow, and is not something you can change on your own. If you need to make a change to this field, please contact our support team following the steps outlined above.
If you believe you have been incorrectly charged tax on your Webflow subscription, please contact our support team with the details of your subscription charge.
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