How do I charge sales tax?

  • Updated

For U.S.-based studios using ShootProof Pay, ShootProof is currently rolling out automated sales tax collection and remittance to adhere to state-based regulations for marketplace facilitators. You can learn more about automated sales tax in this article. 

For locations where automated sales tax is not available yet, it is the studio's responsibility to remit any taxes due to the correct authorities.* In this case, taxes need to be set up in the Taxes tab within each price sheet.

Charge Sales Tax

  1. Go to Store > Price Sheets

  2.  Click on the price sheet

  3. Go to the Taxes tab

  4. In this section, enter the required information:
  • Tax Title - Give the tax area of your check out a custom title. Ex: State Sales Tax
  • Tax Percentage - Set the percentage of the subtotal of taxable items collected on each order.
  • State/Province* - If you want to charge sales tax ONLY on orders placed in a specific state or province, use this drop-down menu to make this selection. Ex: If you select Georgia, ONLY clients that enter Georgia addresses at checkout will be charged the applicable sales tax. A client ordering in Pennsylvania WOULD NOT be charged sales tax.
  • VAT Number (not required for all studios) - If applicable, supply your VAT Number. Generally, this is only necessary for those studios with clients in countries that require this inclusive tax.
  • Charge tax on ShootProof-Fulfilled Digitals - Activate this option if you want to charge your client tax on the ShootProof-fulfilled digital items on your price sheet. 
  • Charge tax on shipping - Activate this option if you want to include shipping in your taxable subtotal. 

*Automated Sales Tax Collection through ShootProof Pay

To adhere to state-based regulations for marketplace facilitators, over the next few months ShootProof is rolling out automated sales tax collection and remittance for studios using ShootProof Pay.

Currently, unless your location is listed in this article, ShootProof does not submit taxes on your studio's behalf, so you'll want to check with your CPA or the Department of Revenue to get information about what sales taxes you're required to collect and remit from your clients.

If you need to set a tax rate for states where automated sales tax isn't yet a available, you can set that in Taxes tab on your price sheet, under the Manual Sales Tax section.  

You can view whether sales tax for an order was remitted by ShootProof or needs to be remitted by the photographer by going to Reports > Orders Report and viewing that information under the Sales Tax Remittance column. 

 

Sales Tax on Packages

Sales tax for packages is determined by the contents of the package. Packages containing at least one physical product are taxed at the rate for physical products, regardless of what else is in the package. Packages that don't contain any physical products but have at least one digital product are taxed at the rate for digital products. 

 

1099-K Forms

ShootProof mails 1099-K forms by January 31st to any studio that had at least $20,000 in sales and 200 transactions processed through ShootProof Pay in accordance with IRS guidelines. For studios not meeting these IRS reporting minimums, no tax forms will be generated or submitted to the IRS by ShootProof.