GotPhoto’s Latest Breakthrough: A Seamless Tax Remittance Process for Photographers
Upgrading Your E-Commerce Experience
What change is upleveling your photography business?
What change is upleveling your photography business?Change can be a good thing. Especially when it makes things simpler, fairer, and more transparent for everyone involved.
We have some good news about an exciting new feature being added to GotPhoto. (Let’s just say we think it will put your photographer mind at ease and make the thought of taxes less daunting).
As of March 1st, 2024, GotPhoto will collect and remit sales tax for all orders placed through GotPhoto in the US.
Where are these changes coming from? And what does this mean for you as a photographer?
GotPhoto is required to comply with a law known as the Marketplace Facilitator Legislation – so the change is mandatory, but we recognize the benefits it will bring to you and your photography business.
In this blog, we will unpack everything you need to know about the upcoming tax changes on GotPhoto and how it will bring change to your photography business.
But before diving into everything new, you might be wondering what a Marketplace Facilitator is, and how the tax affects the tax laws in the US.
A Marketplace Facilitator is any platform that helps sellers and buyers transact business. It provides a platform for sellers to list their products or services, and for buyers to purchase them. GotPhoto is a Marketplace Facilitator.
What is The Marketplace Facilitator Legislation?
The Marketplace Facilitator Legislation is a US law designed to ensure that all Marketplace Facilitators (GotPhoto) take the responsibility of collecting and remitting sales tax directly to the end customer.
As we mentioned before, GotPhoto is required to comply with this law. Though it’s a necessary requirement, it also happens to make things easier for you!
How does it work?
GotPhoto is now set up to automatically calculate, collect, and remit sales tax on sales made through GotPhoto. This is a responsibility you’ll no longer carry the burden of as a photographer.
How do we do it?
GotPhoto is set up with a dynamic tax collection system. This system adjusts and calculates taxes in real-time, based on factors such as:
- The location of the transaction
- The type of product or service
- Any applicable tax regulations
Our automated system will perform calculations using cutting-edge technology. We’ll make your life easier as a photographer and you’ll have one less thing to worry about.
Now, for the fun part.
Who does this law affect?
This law takes the responsibility off of you – the photographer – to collect and remit correct sales taxes on products sold through GotPhoto.
It’s now GotPhoto’s job to take on the calculations and remittance.
Changes only affect US GotPhoto customers. If you are living in Canada, please disregard this.
But isn’t sales tax different in every state?
As mentioned above, the tax adjustments we make are based on the specific state you’re in, along with any additional tax regulations. It’s dynamic!
Since tax regulations will vary from state to state, the tax remittance will be calculated and adjusted according to where you are selling.
You can check if your state has been impacted or affected in this article here.
Please keep in mind that while we’d love to help provide you with more in-depth information, GotPhoto cannot provide tax filing advice. We strongly recommend seeking advice from a professional tax and/or legal advisor.
What’s in it for you as a photographer?
If you’re a GotPhoto user, this legislation might just be your new best friend. Here’s why:
- No more navigating complex sales tax regulations or worrying about compliance issues.
- The burden of collecting and remitting sales taxes on products sold through GotPhoto is off your shoulders!
- You’ll get time and energy back to focus on what you do best – taking photos and providing a fully transparent shopping experience for your customers.
As the world of e-commerce continues to evolve, the Marketplace Facilitator Legislation is one positive step toward creating a more inclusive, fair, and exciting online marketplace.
We hope you’ll embrace the benefits that come along with these changes. Let us do the calculating and remitting of sales tax so you can do what matters most: run your photography business.
If you’d like an in-depth overview of these changes, check out our article here.
Webinar: Tax Compliance for Photographers
Watch the webinar recording with professional tax firm HOST to learn about all of the details surrounding the new tax services provided by GotPhoto.
Enter your details to access the recording!
