How is the sales tax handled in the store?
The way sales tax is calculated and collected dependson who collects the payment in the store. There are two store payment collection processes:
- Payment collected by Pic-Time (default)
- Payment collected by the photographer
Payment collected by Pic-Time
When you create a Pic-Time account, store payments are collected by Pic-Time by default. In this case, we take care of everything pertaining to payments and sales tax. Sales tax is calculated in relation to the registered business location of Pic-Time (California) and the regulations of the state (not the location of the photographer). Pic-Time is doing the sale, therefore Pic-Time’s logo will be on the confirmation email. The sales tax is filed by Pic-Time and the photographer receives a 1099 form for the calendar year, which will report the total profits made in the store. It is important to save your tax number in the system so proper paperwork can be provided from Pic-Time.
Click Settings from the main dashboard.
In the Plans & Billing tab, input the Tax Number.
Payment Collected by the Photographer
When payments are collected by the photographer, the photographer is responsible for setting up their sales tax rates and filing the sales tax with their state.
To set-up the tax template, click Sales & Automation.
In the Store Settings tab, click Setup.
Under the Tax Template drop-down menu choose Automated Tax, Custom, TaxJar or No Tax.
We recommend using the Automated Tax option. This template has all of the required tax information so your taxes will automatically be calculated for you. Automated Tax is only available in the United States, Canada, Australia, European Union, and Israel.
If the automated tax is not available in your location, choose Custom and click Setup to set your tax manually.
Input tax that can be applied to the buyer’s location, product or shipping. Click Apply when ready.
For complete automation of your tax reports, you can use TaxJar. If you do not have a TaxJar account, go to www.taxjar.com and create an account. Then, on the Welcome screen or in your TaxJar account, click on SmartCalcs API. Then click on Generate API Token.
Copy your API Token.
In Pic-Time, click Setup and paste the API Token.
Choose No Tax if you want to handle your sales tax by yourself. If you choose this option, there will be no mention of sales tax in your Pic-Time store. Use this option only if you are sure and know that it is legally allowed for your organization in your country to do so.