The calculation and collection of sales tax depend on who collects the payments in the store. There are two payment collection methods: 1. Payment Collected by Pass (default) 2. Payment Collected by the Photographer
1. Payment Collected by Pass (Default)
When you create a Pass account, payments are collected by Pass by default. In this case, Pass handles all aspects of sales tax, calculated based on its registered business location and state regulations, not the photographer’s location.
- Pass handles the sale, and its logo appears on confirmation emails.
- Sales tax is filed by Pass, and photographers can download a 1099 form for total profits from PayPal for tax filing.
- Ensure your tax number is saved in the system for proper paperwork.
Steps:
- Go to Settings from the Main Dashboard.
- In the Plans & Billing tab, input your Tax Number.
2. Payment Collected by the Photographer
When payments are collected directly by the photographer, you are responsible for setting up, collecting, and filing sales tax with your local authorities. Note that some labs may automatically charge sales tax.
Steps to Set Up Tax Templates:
- Go to Settings from the Main Dashboard.
- Under Store Settings, click Setup.
- Select a Tax Template from the dropdown:
Automated Tax
This option is recommended (if available for your location) as it automatically calculates taxes based on local regulations. Automated Tax is available in:
- United States
- Canada
- Australia
- European Union
- United Kingdom
- Israel
Custom Tax
- Select Custom Tax and click Setup.
- Manually input tax rates based on location, product, or shipping. For example, you can add a 5% state tax and a 2% city tax, which will be combined at checkout for eligible buyers.
- Click Apply to save changes.
TaxJar
For fully automated tax reports, use TaxJar.
Steps to Set Up TaxJar:
- Create an account at www.taxjar.com.
- In your TaxJar account, generate a SmartCalcs API Token under the SmartCalcs API section.
- Copy the API Token.
- In Pass, click Setup under Tax Settings, paste the API Token, and click Apply.
No Tax
Choose this option to handle sales tax independently. Selecting No Tax will set the tax rate to 0%. Use this only if you’re legally permitted to do so in your location.
By selecting the appropriate tax template and payment method, you can ensure compliance with sales tax regulations while offering a seamless shopping experience to your clients.
If you have any questions or need any additional information, please email help@passgallery.com