Sales tax on Webflow subscriptions

Note: We’re transitioning to Workspaces, and are in the process of updating our content. Visit the Workspaces blog post to read more about these updates and changes, or visit our updated lesson about sales tax on Webflow subscriptions. You can also learn how to check if your account is on Workspaces.

In the recent past, Webflow was not required to collect taxes on its sales of software subscriptions and digital services. 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:

1. How location-based sales tax is determined and calculated
2. How to check if any of your Webflow services include tax
3. How to update your billing address
4. How to upload your VAT Identification Number and validate it
5. How to request sales tax exemption for your tax exempt organization
6. How to request help if you believe you’ve been incorrectly taxed

How location-based sales tax is determined and calculated

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.) 

How to know if sales tax is required for your location

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.

Locations where taxes are collected

Currently, we are assessing sales tax for a portion of new user subscriptions in the following US locations:

• Hawaii
• Massachusetts
• New York
• South Dakota
• South Carolina
• Texas
• Utah
• Washington
• West Virginia
  

You can also reference a list of countries where a VAT ID is supported. 

How to check if any of your Webflow services include tax

You can see the details of your charges (including whether tax was charged) by reviewing your invoices. 

1. Review your individual account plan invoices
2. Review your team plan invoices

Review your individual account plan invoices

1. Click the Account dropdown in the top right of your Dashboard
2. Choose Account settings
3. Choose the Billing tab
4. Scroll down to the Invoices section and press “Download as PDF” for any past invoice you want to review

Review your team plan invoices

1. Click the Account dropdown in the top right of your Dashboard
2. Choose Teams and select the Team whose invoices you want to review
3. Choose the Billing tab
4. Scroll down to the Invoices section and press “Download as PDF” for any past invoice you want to review

Read more about how to access your invoices from the Dashboard.

How to update your billing address

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:

1. Update your your individual account billing address
2. Update your your team account billing address

Update your individual account billing address

1. Click the Account dropdown in the top right of your Dashboard
2. Choose Account settings
3. Choose the Billing tab and go to the Active card section
4. Click “Update card” to access your billing address (and VAT ID details if applicable) 
5. Update your billing details and press Save
   

Update your team account billing address

1. Click the Account dropdown in the top right of your Dashboard
2. Choose Teams and select your Team
3. Choose the Billing tab and go to the Active card section
4. Click “Update card” to access your billing address (and VAT ID details if applicable) 
5. Update your billing details and press Save
   

How to upload your VAT Identification Number and validate it

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:

1. Add or update your individual account VAT ID 
2. Add or update your team account VAT ID

Add or update your individual account VAT ID

You can add or update your individual account’s VAT ID in either of 2 ways:

• Update your VAT ID in your Dashboard
• Update your VAT ID when you update your billing address or credit card

Update your VAT ID in your Dashboard

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: 

1. Click the Account dropdown in the top right of your Dashboard
2. Choose Account settings
3. Choose the Billing tab and go to the Additional account billing info section
4. Add your VAT ID and press “Save changes”

Update your VAT ID when you update your billing address or credit card

1. Click the Account dropdown in the top right of your Dashboard
2. Choose Account settings
3. Choose the Billing tab and go to the Active card section
4. Click “Add card” (if you don’t already have a card on file), or “Update card” to access billing address and VAT ID details
5. Select your country (a VAT input field will appear if your billing address is in a region supporting VAT)
6. Type in your VAT ID and press “Save”
   

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. 

Delete your individual account VAT ID

1. Click the Account dropdown in the top right of your Dashboard
2. Choose Account settings
3. Choose the Billing tab and go to the Additional account billing info section
4. Delete your VAT ID and press “Save changes”

Add or update your team account VAT ID

You can add or update your team account’s VAT ID in either of 2 ways:

• Update your VAT ID in your team Dashboard
• Update your VAT ID when you update your team billing address or credit card

Update your VAT ID in your team Dashboard

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: 

1. Click the Account dropdown in the top right of your Dashboard
2. Choose Teams and select your Team
3. Choose the Settings tab and go to the Additional info section
4. Add your VAT ID and press “Save changes”
   

Update your VAT ID when you update your team billing address or credit card

1. Click the Account dropdown in the top right of your Dashboard
2. Choose Teams and select the Team whose billing details you want to update
3. Choose the Billing tab and go to the Active card section
4. Click “Add card” (if you don’t already have a card on file), or “Update card” to access billing address and VAT ID details. 
5. Select your country (a VAT input field will appear if your billing address is in a region supporting VAT)
6. Type in your VAT ID and press “Save”
   

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. 

Delete your team account VAT ID

1. Click the Account dropdown in the top right of your Dashboard
2. Choose Teams and select your Team
3. Choose the Settings tab and go to the Additional info section
4. Delete your VAT ID and press “Save changes”

VAT ID supported countries

A VAT ID is supported in the following countries: 

• Austria (AT)
• Belgium (BE)
• Bulgaria (BG)
• Cyprus (CY)
• Czech Republic (CZ)
• Germany (DE)
• Denmark (DK)
• Estonia (EE)
• Greece (EL)
• Spain (ES)
• Finland (FI)
• France (FR)
• Croatia (HR)
• Hungary (HU)
• Ireland (IE)
• Italy (IT)
• Lithuania (LT)
• Luxembourg (LU)
• Latvia (LV)
• Malta (MT)
• Netherlands (NL)
• Poland (PL)
• Portugal (PT)
• Romania (RO)
• Sweden (SE)
• Slovenia (SI)
• Slovakia (SK)
  

How to request sales tax exemption for your tax exempt organization

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: 

1. Your tax exempt certificate with Webflow’s full name and address added to it (see below for Webflow’s name and address)
2. Additional certificates that may be required (based on your entity type and location)
   

Webflow’s address is: 

Webflow, Inc.

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: 

1. Click the Account dropdown in the top right of your Dashboard
2. Choose Account settings
3. Choose the Billing tab and go to the Additional account billing info section
4. Look for the tax exempt designation in the Sales tax exemption field (e.g., charitable organization, religious organization, educational organization, etc.)

To see your team account’s tax exemption:

1. Click the Account dropdown in the top right of your Dashboard
2. Choose Teams and select your Team
3. Choose the Settings tab and go to the Additional info section
4. Look for the tax exempt designation in the Sales tax exemption field (e.g., charitable organization, religious organization, educational organization, etc.)

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.

How to request help if you believe you’ve been incorrectly taxed

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.