How much is Squarespace VAT on its hosting? (2024 guide)
Simon graces the blog - Squarespace is pretty open about its hosting costs, but be aware it adds VAT on at the checkout!
What is the true cost of Squarespace website hosting once VAT is added? We are regularly switching live Squarespace websites for clients. Squarespace’s website hosting pricing is generally pretty clear, but one thing that isn’t obvious until you reach checkout is how much it will be with VAT on top.
If you’ve used Squarespace for any length of time, you’ll be aware uses its own hosting. It works on the basis of a fully-managed service, so all updates, maintenance and security patches are taken care of for you behind the scenes and included in the hosting.
Unlike WordPress, you don’t need a separate hosting provider, and there’s no requirement to remember to update themes or update plugins. It offers a lot of peace of mind, which is why we like it, and frees you up to focus on the important things in your business, like content marketing via your blog, fulfilling orders or social media marketing on Instagram.
However, because Squarespace doesn’t make VAT obvious in its published prices, we’re going to break down its pricing in this blog to include VAT so you know what to expect.
If you are based in the UK, this short guide should help you see at a glance what the costs are for your website hosting, depending on whether you have to factor Value Added Tax (VAT) or not.
If you want to compare the true costs of the various tiers at a glance, check out our simple table on Notion with Squarespace hosting compared.
All the figures below are accurate at the time of writing (November 2022).
Wildings is a website designer for small businesses. Our studio is based in Torquay, Devon, and we provide small business website design for creative, hospitality & lifestyle businesses across the UK (like garden designers, interior designers, architects, floral designers and more!). If you’d like to find out more, explore our website design for small businesses or contact this small business website designer →
Does Squarespace charge VAT?
Before we go through how much VAT adds to the published prices for Squarespace hosting plans, here’s the answer to ‘does Squarespace charge VAT?’.
N.B. this relates to those in the UK and does not constitute financial advice - please consult your accountant or business advisor.
In short, yes, Squarespace does charge VAT, but this depends on your business setup.
If you are registered for VAT, such as a limited company, you can enter your VAT number at the checkout and then Squarespace will deduct VAT from your hosting. (Note that you can be a limited company and not VAT-registered.)
If you are a private individual or a sole-trader (and not VAT-registered), VAT will be added to Squarespace’s published prices when you get to checkout.
See below for a full breakdown of Squarespace VAT when applied to the prices on its website. Here’s a quick comparison table too of Squarespace VAT.
Is there VAT on Squarespace?
This depends what you are looking at.
At first glance, Squarespace’s advertised prices on its website look like they don’t include VAT.
However, when you publish your site which requires a hosting plan and you get to the end of the checkout process, you will see that VAT is then added on top of the public prices.
See below for what VAT adds to the price of Squarespace hosting.
Note that if you are VAT-registered, you can pay the ex-VAT price as long as you have a valid VAT registration number that you will be required to add at checkout.
What is the Squarespace UK pricing?
If you’re a small business in the UK looking at Squarespace for your website and how much the hosting will be, the pricing options are pretty obvious on Squarespace’s website: Squarespace Pricing: All Pricing Plans
You can also change the currency from USD to GBP by using the toggle in the bottom left hand corner.
The thing to bearing in mind with Squarespace UK pricing is that the advertised prices don’t include VAT upfront.
The only way to find out the cost including VAT is to go through the checkout process (or check out our pricing guide below). You can find the cost of VAT without paying, if you want to research the cost.
Overall, it’s worth being aware of this when it comes to Squarespace UK pricing - don’t get caught out, as the public, advertised prices don’t include VAT!
What is the cost of Squarespace VAT on the Personal plan?
VAT on Squarespace’s Personal website hosting plan is as follows:
£28.80 out of £172.80 (pay annually)
£3.20 out of £19.20 (pay monthly)
If we break that down, here’s how it works:
Squarespace VAT on Personal plan (pay annually)
£12 * 12 months = £144.00 (25% discount)
VAT = £28.80
Total including VAT = £172.80
Equivalent of £14.40 (including VAT) if you were to pay month to month (which you can’t - for comparison only)
If you are VAT-exempt or claim back the VAT, you would pay £144.00 (annual) or £12.00 (equivalent of monthly - again, just for comparison)
Squarespace VAT on Personal plan (pay monthly)
£16 per month (no discount available)
VAT = £3.20
Total including VAT = £19.20
Equivalent of £230.40 if you paid annually (which you can’t - for comparison only)
If you are VAT-exempt or claim back the VAT, you would pay £16.00
Compare the various options: Squarespace VAT on website hosting plans compared →
You can see Squarespace’s website hosting plans on its website, plus a full website feature list.
What is the cost of Squarespace VAT on the Business plan?
VAT on Squarespace’s Business website hosting plan is as follows:
£40.80 out of £244.80 (pay annually)
£4.80 out of £28.80 (pay monthly)
If we break that down, here’s how it works:
Squarespace VAT on Business plan (pay annually)
£17.00 * 12 months = £204.00 (29% discount)
VAT = £40.80
Total including VAT = £244.80
Equivalent of £20.40 (including VAT) if you were to pay month to month (which you can’t - for comparison only)
If you are VAT-exempt or claim back the VAT, you would pay £204.00 (annual) or £17.00 (equivalent of monthly - again, just for comparison)
Squarespace VAT on Business plan (pay monthly)
If you choose the pay monthly option (no discount unfortunately), this is how it breaks down:
£24.00 per month (no discount)
VAT = £4.80
Total including VAT = £28.80
Equivalent of £345.60 if you paid annually (which you can’t - for comparison only)
If you are VAT-exempt or claim back the VAT, you would pay £24.00
Compare the various options: Squarespace VAT on website hosting plans compared →
You can see Squarespace’s website hosting plans on its website, plus a full website feature list.
What is the cost of Squarespace VAT on the Commerce BASIC plan?
VAT on Squarespace’s Commerce BASIC website hosting plan is as follows:
£55.20 out of £331.20 (pay annually)
£5.60 out of £33.60 (pay monthly)
If we break that down, here’s how it works:
Squarespace VAT on Commerce BASIC plan (pay annually)
£23.00 * 12 months = £276.00 (25% discount)
VAT = £55.20
Total including VAT = £331.20
Equivalent of £27.60 (including VAT) if you were to pay month to month (which you can’t - for comparison only)
If you are VAT-exempt or claim back the VAT, you would pay £276.00 (annual) or £23.00 (equivalent of monthly - again, just for comparison)
Squarespace VAT on Commerce BASIC (pay monthly)
£28.00 per month (no discount available)
VAT = £5.60
Total including VAT = £33.60
Equivalent of £403.20 if you paid annually (which you can’t - for comparison only)
If you are VAT-exempt or claim back the VAT, you would pay £28.00
Compare the various options: Squarespace VAT on website hosting plans compared →
You can see Squarespace’s website hosting plans on its website, plus a full website feature list.
What is the cost of Squarespace VAT on the Commerce ADVANCED plan?
VAT on Squarespace’s Commerce ADVANCED website hosting plan is as follows:
£84.00 out of £504.00 (pay annually)
£8.60 out of £51.60 (pay monthly)
If we break that down, here’s how it works:
Squarespace VAT on Commerce ADVANCED plan (pay annually)
£35.00 * 12 months = £420.00 (19% discount)
VAT = £84.00
Total including VAT = £504.00
Equivalent of £42.00 (including VAT) if you were to pay month to month (which you can’t - for comparison only)
If you are VAT-exempt or claim back the VAT, you would pay £420.00 (annual) or £35.00 (equivalent of monthly - again, just for comparison)
Squarespace VAT on Commerce ADVANCED (pay monthly)
£43.00 per month (no discount available)
VAT = £8.60
Total including VAT = £51.60
Equivalent of £619.20 if you paid annually (which you can’t - for comparison only)
If you are VAT-exempt or claim back the VAT, you would pay £43.00
Compare the various options: Squarespace VAT on website hosting plans compared →
You can see Squarespace’s website hosting plans on its website, plus a full website feature list.
How much do I save by paying annually on Squarespace?
£57.60 Squarespace Personal
£100.80 Squarespace Business
£72.00 Squarespace Commerce BASIC
£115.20 Squarespace Commerce ADVANCED
In £ spent, you save most by paying annual on the Commerce ADVANCED plan, but in % terms the Business plan comes up top.
So those are the true costs of the Squarespace VAT on its website hosting plans, if you’re doing some research for your small business website. Bear in mind that you get a user-friendly, intuitive platform with Squarespace and that the hosting takes a lot of the hassle away for you - no need to do manual backups, update plugins or update themes. If you’d like to learn more from us on website design or get visual inspiration, follow @wildings.studio on Instagram or read more of our blogs on website design too.
