US Dynamic Sales Tax Calculation

If a digital product is part of a package, sales tax is calculated depending on the purchaser's state. Usually, the highest tax rate is applied. GotPhoto will calculate this according to the law. If products are purchased à la carte, a digital product will have a digital sales tax applied, and a physical product will have a physical sales tax applied.

Yes, reporting on the amount of sales tax calculated with each order is available in 3 places:

• The Sales Tax Report under your account’s Statistics tab
• The Invoices Report under your account’s Orders tab
• The Orders Report under each job's Statistics tab.

Please note that neither GotPhoto nor its employees can provide you with tax advice.

When a marketplace facilitator collects and remits tax, they are doing so under their own sales tax accounts, not their sellers', and any tax filing responsibilities that the seller has will still remain.

Please involve your tax advisor for any audit inquiries.

State revenue departments and comptrollers are very familiar with Marketplace Facilitators. They will not ask you for proof of GotPhoto's sales tax remittance. They may look to GotPhoto if they need any additional verification about GotPhoto's Marketplace Facilitator status. We will be ready and available to accommodate any direct inquiries from them.

Should you need help running any of the GotPhoto reports provided in your account, please reach out to our Customer Care team, and we'll be happy to assist you.

If you are located in a state that does not collect sales tax (Delaware, Montana, Oregon, New Hampshire), sales tax will still be charged based on your customer's location. For example, if you have a studio in Oregon, and a customer from Idaho makes a purchase, Idaho sales tax will be collected on that sale.

This question regards tax-exempt businesses within states that collect sales tax, not businesses within states that do not collect sales tax at all.

Please email your tax exemption certificate to tax-exempt@gotphoto.com and we will notify you when the process is completed (Note: a tax-exempt reseller certificate is not considered a tax exemption certificate). Once completed, the status "Tax-exempt status: Yes" will appear on your Tax Settings tab:

Please note: Sales tax will be charged if you have not sent in your tax exemption certificate. You can still submit your certification, however taxes already charged will not be refunded.

We are neither tax experts nor tribal legal experts, so please consult with your accountant or state directly about the applicable tax-exemption laws for sales to tribal members. We can confirm that orders delivered to a tax-exempt address at checkout will be considered tax-exempt, and sales tax will not be charged. If, for any reason, the purchaser believes sales tax was over-collected, they can always request a refund from their state.

We are neither tax experts nor military legal experts, so please consult with your accountant or state directly about the applicable tax-exemption laws for sales to military personnel. We can confirm that orders delivered to a tax-exempt address at checkout will be considered tax-exempt and sales tax will not be charged.

The Invoice Settings page and the Organization tab will no longer allow you to add your sales tax rates.

Only payments made via the GotPhoto platform (i.e. Stripe Express) will be included in this calculation. There is one exception for manual orders ("Preorders") that are placed in the order entry:  Although GotPhoto is not obliged to collect and remit sales tax for orders where payment is processed outside the platform, we want to ensure a consistent and beneficial service for our photographers. We understand that our Order Entry feature is used to create manual orders for a variety of reasons, such as capturing a new sale manually or simply reprinting an existing order. Therefore, we will give you the choice of either generating an invoice or not when manually creating an order through GotPhoto once we introduce the dynamic sales tax calculation and remittance:

• If an invoice is generated, we will view this as a new sale for which we are providing an invoice service. We will then calculate, collect, and remit sales tax for these orders for you. Since payment was made outside the platform, you will be invoiced for the sales tax amount at the end of the month.
• If an invoice is not generated, we will not view this as a new sale and we will not calculate, collect, and remit sales tax. You will be responsible for any sales tax obligations for these orders, should they exist. You can find more detailed information here: https://help.gotphoto.com/hc/en-us/articles/16583536328861-Dynamic-Sales-Tax-Order-Entry-Updates-US-only

No, the end-customer experience in the shop will not change since these changes are happening behind the scenes. On their invoice, we will still show them the total sales tax that has been applied.

Batch shipping jobs will be taxed according to your batch shipping address, unless a download is included in the order.

If a download is included in the order, it is considered a direct order rather than a batch order. In this case, the tax is calculated based on the highest tax rate between the batch shipping address and the customer-provided billing address.

When setting up your batch shipping job, please ensure that the batch shipping address is correct.

Yes, your customers will continue to see sales taxes calculated at checkout. Since November 2023, your customers have been required to enter their addresses before completing a purchase. The address entered will now be used to calculate the sales taxes.

Yes, you can continue to display gross prices. Taxes will be calculated, collected, and remitted on these prices.

Your account will need to remain open to receive your form 1099-K the following January. You do not need to use your account during this time, but we cannot deactivate it. You may downgrade to a free plan during this time.