The way sales tax is calculated and collected depends on who collects the payment in the store. There are two store payment collection processes:

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 (Delaware) 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 can download a 1099 form for the calendar year from Paypal directly, 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.

1. Click Settings from the Main dashboard.

2. In the Plans & Billing tab, input the Tax Number.

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. Depending on your lab, sales tax may be automatically charged by your lab.

1. To set up the tax template to charge your clients the tax, click Settings.

2. In the Store Settings tab, click Setup.

3. Under the Tax Template drop-down menu choose Automated Tax, Custom, TaxJar or No Tax.

We recommend using the Automated Tax option if it is available for your location. 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, United Kingdom, and Israel.

1. If the automated tax is not available in your location, choose Custom and click Setup to set your tax manually.

2. Input tax that can be applied to the buyer’s location, product, or shipping. If for example you have a 5% tax for a certain state or province, and then an additional 2% tax for people in a particular city or town within that state, you will add two different taxes one at 5% and one at 2%. At checkout, if the client fits both criteria, they will be charged the total amount of tax, or 7% in this example. Click Apply when ready.

1. 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.

2. Copy your API Token.

3. 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, the tax will be displayed as 0. Use this option only if you are sure and know that it is legally allowed for your organization in your country to do so.

Starting Sept. 1 2024, users who selected GTA Imaging as their fulfiller will be charged sales tax automatically by their lab. Click here to learn more about it.