Depending on the rules and regulation of that particular State, sales tax is either collected based on the shipping destination, in which case the sales tax gets calculated for each order depending on where it is shipped to. If your State is origin based, sales tax is being calculated based on your business location. The sales tax rate is automatically determined by zip code.
Sales tax can be applied to Zenfolio partner products, self-fulfilled products, digital products, and shipping. Whether or not digital products or shipping is taxable depends on the tax laws of the specific State.
In addition, sales tax is collected on orders fulfilled by our partners and shipped to the state of California in the USA regardless of whether you have selected this option. Zenfolio will file the sales tax returns in California and the tax collected is not transferred to your account in these cases. International customers are responsible for all duty taxes and VAT that may be added to the cost of the order upon receipt.
Applying Sales Tax
- In the Dashboard, click Settings from the main menu.
- Click Selling.
- Select Sales Tax.
- Check the box indicating you want to collect sales tax or other taxes.
- Under Collect tax in, check the box next to the state your business is located - This will appear in the 'Tax Line Title' which the customer sees in the shopping cart and on their order receipt. (check multiple boxes if you have a business presence in multiple states). Generally this should be specific to your local region, state, or province. The Tax Line Title will appear to the customer.
- Under Tax based on, choose one of the following options.
- Shipping Destination if you would like to set the sales tax rate to the zip code to which the order is sent.
- Enter your Zip code to set the sales tax rate on your own zip code. Enter your zip code in the field provided.
- Custom to enter your own custom tax percentage.
Note: by default each state has the Tax based on setting applied automatically based on that state's tax requirement, but this can be changed if necessary. Please visit the IRS's website to find more information on your state's tax protocols.
- Under Tax applicability check the boxes that apply. For example, if you would like sales tax applied to shipping charges check the box next to Include Shipping.
- Click Save to apply your changes.
Here you can check the boxes that apply. For example, if you would like sales tax applied to shipping charges check Apply sales tax to shipping.
Collect Tax In
Check the box or boxes to indicate which states for you need to collect sales tax.
Selecting multiple state usually indicates that you have a business presence in the state.
Tax Based On
Here you will be able to choose either Shipping destination or Enter your Zip code to determine whether the tax applied is based on the shipping destination or based on the the sales tax rate in your own zip code. If Enter your Zip code is selected, you will be able to type in the the area code or city to find matching zip codes in this field.
The option is also provided to use Custom and enter your desired sales tax rate that you would like to charge your clients. It is your responsibility to check with a local tax authority to ensure that you are charging the sales tax based on the most accurate and up-to-date Sales Tax rate.
Note: Each state has their own tax laws and whether products and/or services are taxable. Depending on the state(s) you are collecting sales tax in you may not be able to check or uncheck what services to collect tax for.
If you are unsure of your tax information or whether you should collect tax for your order please click here to visit the IRS's website.