Levy on Webflow Subscriptions

In the recent past, Webflow did not have the obligation to gather taxes on its sales of software subscriptions and digital services. However, this situation has now changed, and certain locations now mandate the application of a sales and consumption tax or other indirect taxes, like VAT (Value Added Tax) or GST (goods and services tax) on these services. As Webflow applies taxes depending on your billing location, it is imperative that your billing address is correct and kept up to date.

Within this session, you will understand:

1. How geographical-based sales tax is determined and computed
2. How to ascertain if any of your Webflow services involve tax
3. Steps to refresh your billing location
4. How to upload and authenticate your Tax ID Number
5. How to solicit sales tax immunity for your tax-exempt organization based in the US
6. How to seek assistance if you suspect you have been unjustly taxed

How geographical-based sales tax is ascertained and computed

To precisely accumulate the legally mandated volume of sales taxes for subscriptions, Webflow collaborates with Avalara, a top-rated sales tax collection platform. If there is a legal mandate for collecting tax in your area, Webflow will reference your tax responsibility based on the billing address of your transaction and impose the rate stipulated by your regional jurisdiction.

One must bear in mind that local regulations might evolve. If you are not currently subject to a geographical-based sales tax, it does not imply that your local jurisdiction’s tax directives will not change in the future.

Should your billing address lead to a geographical-based tax, the taxes will only be imposed on Workspace plans and Site plans. (Presently, sales tax won’t be levied on template acquisitions, additional charges, etc.)

Verifying the necessity for sales tax in your location

We are implementing sales tax incrementally on fresh subscriptions to Webflow for new users and the subscriptions of existing customers.

Concerning the subscriptions of existing customers, the alteration to your account will occur automatically, and prior notification will be furnished via email, if the need arises to update your billing address, VAT Identification Number, GST Identification Number, or tax-exempt status. If these updates are necessary, you can navigate to your Workspace settings > Billing tab to effect these modifications.

Novel user subscriptions shall incur taxation within specified US locations.

Regions subject to tax collection

The current phase involves evaluating sales taxes on a fraction of new user subscriptions in the following US regions:

• Alabama
• Alaska
• Arizona
• Colorado
• Connecticut
• DC
• Hawaii
• Iowa
• Illinois
• Kentucky
• Massachusetts
• New York
• Ohio
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Texas
• Tennessee
• Utah
• Washington
• West Virginia

You can also refer to a list of nations where VAT IDs are recognized.

Checking for the presence of tax on any of your Webflow services

You can review your invoices to examine the specifics of your charges (including the imposition of taxes).

Examine your Workspace plan invoices

1. Access the Account drop-down in the navigation bar
2. Click on Workspaces
3. Select the Workspace you wish to review
4. Proceed to the Billing tab > All invoices
5. Hit “Download PDF” for any prior invoice that you wish to review

Learn more about the Billing tab.

Upgrading your billing address

For accurate tax computation on your Webflow subscriptions, the currency of your billing address is crucial. You can rectify your billing address within your Workspace settings.

Revise your Workspace billing address

1. Gain entry to the Account dropdown in the navigation bar
2. Access Workspaces
3. Choose the Workspace for which you intend to update the billing address
4. Navigate to the Billing tab > Payment card
5. Tap on Update card to view your billing address (and Tax ID details, if applicable)
6. Modify your billing particulars and click Save

Submitting and verifying your Tax Identification Number

Essential: All clients in eligible countries are subject to VAT or GST unless they provide a legitimate VAT or GST Identification Number. If your enterprise hails from a country where Webflow must collect tax, and you can’t input a VAT or GST ID to avoid taxation, you must seek a refund from your local tax authority.

The Tax Identification Number (comprising both Value Added Tax Identification Numbers (VAT IDs) and Goods and Services Tax Identification Numbers (GST IDs)) are employed to pinpoint corporations for tax collection in certain countries (including the European Union). By supplying a Tax ID to Webflow, you establish a business-to-business rapport between your entity and Webflow. This business-to-business status, alongside your business’s location, dictates whether Webflow will levy VAT or GST on acquisitions and subscriptions.

You can append or amend your Tax ID in your Workspace settings > Billing tab > Additional billing info.

Note: If applicable, your VAT ID must start with the country code and must be immediately followed by a string of numbers or characters (e.g., FR12345678901). Discover more about EU VAT number configurations.

Note: If applicable, your GST ID comprises 15 alphanumeric characters with the initial 2 characters being numeric, and the 14th character should be “Z”.

Incorporate, amend, or delete your Workspace Tax ID

You can integrate or amend your Workspace’s Tax ID in either of two methods:

• Revise your Tax ID in your Dashboard
• Revise your Tax ID when updating your billing address or credit card

Update your Tax ID in your Dashboard

If your billing address already communicates that you are in a VAT or GST ID supportive country, you will automatically view a Tax ID field in your Workspace Dashboard.

To append your Tax ID to this field:

1. Merge the Account dropdown in the navigation bar
2. Click on Workspaces
3. Choose the Workspace for which you wish to update the Tax ID
4. Proceed to the Billing tab > Additional billing info
5. Enter your Tax ID in the Tax ID field
6. Click on Save changes

Update your Tax ID when updating your billing address or credit card

1. Access the Account dropdown in the navigation bar
2. Click on Workspaces
3. Select the Workspace for which you intend to update the Tax ID
4. Navigate to the Billing tab > Payment card
5. Click on Add card (if a card is not yet on file) or Update card to view billing address and Tax ID particulars
6. Select your country (an input field for Tax ID will surface if your billing address is within a VAT-supported region)
7. Input your Tax ID
8. Hit Save

Upon saving, the changes will take effect.and provided a VAT identification number, it will undergo verification through Stripe (Webflow’s payment processor) and will be visible in the Workspace settings under the Billing tab and then in the Additional billing info section. You will receive notifications on your Webflow Dashboard and via email if there are any issues with the verification of your VAT ID. 

Moreover, your Tax ID will automatically be included in the invoices for your Workspace plan.

To Remove Your Workspace Tax ID

1. Begin by opening the Account dropdown on the navigation bar
2. Proceed to click on Workspaces
3. Select the Workspace for which you want to remove the Tax ID
4. Navigate to the Billing tab and then to the Additional billing info section
5. Delete your VAT ID from the field labeled Tax ID
6. Finally, click on Save changes

List of Countries that Support VAT IDs

VAT IDs are 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)
• United Kingdom (GB)
• Croatia (HR)
• Hungary (HU)
• Ireland (IE)
• Italy (IT)
• Lithuania (LT)
• Luxembourg (LU)
• Latvia (LV)
• Malta (MT)
• Netherlands (NL)
• Norway (NO)
• Poland (PL)
• Portugal (PT)
• Romania (RO)
• Sweden (SE)
• Slovenia (SI)
• Slovakia (SK)

List of Countries that Support GST IDs

• India (IN)

Steps to Request Sales Tax Exemption for US-based Tax-Exempt Organizations

If your billing address falls under a taxable location, and your organization is tax-exempt, you may seek sales tax exemption by reaching out to our customer support team. In your support request, it’s essential to include: 

1. Your tax-exempt certificate with Webflow’s complete name and address on it (refer below for Webflow’s name and address)
2. Any additional certificates that may be necessary, depending on your entity type and location

Address details for Webflow:

Webflow, Inc.

398 11th Street, 2nd Floor

San Francisco, CA 94103

Note: 501(c)(3 ) status from the IRS is not considered conclusive evidence for state or city sales tax exemption.

Upon confirmation of your tax-exempt status by our customer support team, you can view your tax exemption indication on your Dashboard.

To access your Workspace’s tax exemption status: 

1. Commence by opening the Account dropdown from the navigation bar
2. Select Workspaces
3. Choose the specific Workspace where you wish to review the tax exemption status
4. Then, navigate to the Billing tab and locate the Additional billing info section
5. Check for the tax exemption indication in the Sales tax exemption field (e.g., charitable organization, religious organization, educational organization, etc.)

Important to Remember: The Sales tax exemption field is designed to confirm that your tax-exempt status is recorded with Webflow and cannot be modified independently. In case you need to update this field, kindly reach out to our support team following the aforementioned process.

Instructions for Seeking Assistance in Case of Incorrect Tax Charges

If you suspect that you have been erroneously taxed on your Webflow subscription, please get in touch with our support team and provide details regarding your subscription charge.