I’m indifferent

Charging state sales tax.

Do I need to charge sales tax to customers who live in my state?
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  • Hi Todd,

    No, we will automatically add the sales tax to the order during the process.

    ~Javaneh
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  • 1
    Who is collecting the tax? Will Fotomoto be sending it to us, the photographers, to disperse? Or is Fotomoto paying sales tax to 50 something jurisdictions?

    This does not seem right. If I, a photographer in Texas, sell a photo to a person in Texas, I must charge sales tax myself. But if I sell it to someone in another state, no sales tax is required.

    Since, my way of the method Fotomoto is operating, I am actually selling the photos to Fotomoto, in California, who is then reselling them to the end customer, I do not have to charge sales tax. Fotomoto should only charge sales tax if their customer is in California.
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  • Actually the was you have explained it exactly the way it is! Currently only Californian buyers pay tax. This may change though as we are planning to have more partners in different states, which means we will have to do the tax in those states too. But I know there have been some changes in the law that makes things a little more complicated (Amazon had to pay a lot of fine for it a few months ago). But again, since our photographers deal with us, and we deal with your customers, everything will our responsibility and you won't have to deal with these things anymore!
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    • I am confused on this too. If I sell a print in person to a customer who lives in Colorado, I am suppose to collect Colorado Sales Tax. The Department of Revenue recently told me that I am suppose to collect Sales Tax even on Fotomoto orders if the customer lives in Colorado. That doesn't seem right to me, so I asked my accountant. My accountant said that if Fotomoto really is acting as a reseller then I should have some kind of reseller ID for Fotomoto on file?
    • Derek (Official Rep) January 29, 2013 06:14
      Hi James, please see my new post in this thread for the response.

      Thanks and kind regards,
      Derek
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  • I just wanted to clarify the situation. I am considering using Fotomoto to simplify my image licencing workflow.

    I am located in New Zealand, as I am registered for GST (Goods and Services Tax), Goods and services sold locally to clients in New Zealand incur GST of 12.5%.

    Are you saying that Fotomoto buys the image or licence from the photographer and then on on sells the product to the final recipient?

    Essentially, Fotomoto are my client and the end purchaser is a client of Fotomoto.

    This would then mean that all products sold are not subject to GST even if the end recipient is located in NZ.

    That would also mean that Fotomoto are responsible to ensure that the licencing terms of any image downloaded are adhered to.

    If an image was licenced for personal use and found to be used in a commercial application does that mean Fotomoto will pay the difference in licencing costs to the photographer and then be responsible for recovering the costs from the end recipient who purchased the licence from them?
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  • Hi nzdi,

    No, this is not right. We do not by the whole license of the photo from you. You will be the sole owner of the photo, and because of that, you are the only person who is in charge and can follow up on all the misusing / abusing a photo. We only "buy" the photo from you for a very specific customer and a very specific transaction (you have all that info before sending the photo to us). So, if anyone uses your photo, Fotomoto will not be responsible for that, the person who has has used the photo will be.

    I do not think anyone else, even specific stock agencies like iStockPhoto offer such a thing, but I might be wrong. But Fotomoto does not offer that.

    Of course, you always have the option to only enable the features / products that you are comfortable with.

    Thank you,

    --Ahmad
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  • I’m worried
    But, when a customer orders it from Canada, they still have to pay GST/PST upon delivery. Does that mean that customer is being taxed twice?
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  • Ahmad (Official Rep) March 02, 2010 22:58
    sarah,

    Canada customers don't pay sales tax to us! They only pay the SGP/PST upon arrival, which by the way, is not ask all the time!
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  • I’m curious
    I apologize for all my questions but I just want to sort out what my customers will be charged before I post a gallery online. Basically, if a customer orders from Canada, they don't pay any sales tax to you or the printer. They just pay a GST/PST tax to the delivery service when the package is delivered, correct?
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  • EMPLOYEE
    I’m happy
    Ahmad (Official Rep) March 02, 2010 23:13
    No problem Sarah! That's right, they do not pay any tax to us or print lab. And most of the time, I know that Canada borders don't charge taxes for simple prints either, but that's not 100% of the time. IF they pay any tax, that would be when the package is delivered.
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  • I’m curious
    Good to know! And I know I asked this in another thread, but what are your shippers brokerage costs for international shipping. A year ago, I ordered some prints from a completely unrelated company and the brokerage cost + shipping +tax was far more than the print itself. What do your shippers charge for brokerage on international shipments. And thanks for your steady replies.
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  • Ahmad (Official Rep) March 02, 2010 23:25
    I remember that it was either USPS or UPS that was charging a brokerage fee for the Canadian customers, but I don't remember which one! That is fixed now (we are using a different shipping company for Canadian customers), so you / your customers should have that problem any more.
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  • Derek (Official Rep) January 29, 2013 06:17
    Hi James,

    Thanks for your post. This is a very dated thread, and several things have changed about our service on 10/19/12, one being that you now have choices on how you want sales tax to be charged. Please log in to your Dashboard and go to http://my.fotomoto.com/account/tax to see the options.

    Regarding Fotomoto's role, we are not a reseller, rather we are a service provider that coordinates the sales and order fulfillment process between buyers, sellers, printers and shippers. Note that profits (minus fees) are now applied directly to your payment account as explained in How can I get paid for the products I sell using Fotomoto?, so you might want to revisit the subject with your accountant on how best to handle any tax obligations.

    I hope that helps and kind regards,
    Derek
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  • I’m feeling better!
    Awesome, thanks for the clarification Derek! I have changed the tax settings in my account to "Only charge tax for my state: Colorado." So I assume Fotomoto will periodically mail me a check for the amount of sales tax collected so I can pay the Department of Revenue directly? How does that work? (I looked for the answer in the support area, my apologies if I somehow missed the answer!)
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  • Derek (Official Rep) January 29, 2013 18:24
    Hi James,

    You're very welcome - I'm glad to help.

    Regarding when you get paid the sales tax collected, it's actually an immediate process once an order is placed - please see How can I get paid for the products I sell using Fotomoto?.

    I hope that helps again!
    Derek
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  • I’m thankful
    Oops, didn't pick up on that detail but it all makes sense now! Thanks Derek!
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  • I wanted to offer a way around sales tax for CA sellers residing in CA.

    This is what I received from the CA State Board of Equalization.

    Hello again Doug,

    Generally, if you pay tax on the item and give it away, you would not need to charge tax.

    This answer is intended to provide general information regarding the application of the tax and will not serve as a basis for relief of liability under Revenue and Taxation code section 6596.

    Thank you for contacting the Board of Equalization's Taxpayer Information Section. If you have any further questions, please contact us between the hours of 8:00 a.m. and 5:00 p.m., Pacific Time, Monday through Friday, excluding state holidays. Our telephone number is

    1-800-400-7115.

    TN

    http://www.boe.ca.gov/info/enotify.htm

    So what you do is charge the customer for your labor, which is not taxable, and then give the image away to them for free--as advertising or as a gift.

    But with FM we don't have that option because the tax is passed to us to pay the state by default, no matter what option we choose, making this very legal loophole unavailable for us to use.

    Also, many people running small business are far too busy to pay quarterly taxes so they take a small penalty and pay once a year. I don't know what the penalty is if you defer tax money to the state for a year, or if you can even do that legally in spite of a penalty.

    I do know that in many instances your CPA can get you out of paying CA tax altogether, but if you are a reseller, that's not possible, and FM forces reseller status on us.
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  • As an Australian doing my own printing here and Not in the states, tax must be paid on all orders received, however the tax component system doesnt work if you are not in US.

    Under Australian law, we must charge 10% Sales Tax on all sales within Australia and this must be shown on the invoice as a tax component.

    This Fotomoto is the simplest and mist user friendly system I have ever used and I know it is primarily for US usage, but could we get a tax component where we can enter the tax rate and select our own country where the tax is needed to be paid

    Cheers

    John
    • Derek (Official Rep) March 13, 2014 04:38
      Hi John,

      Thank you for the kind words about Fotomoto - we really appreciate it!

      I can see the need for this and I'm sorry we don't currently offer it. I've re-posted your comment as an Idea so it will be considered as a new feature request. Here's the URL if you'd like to "vote" for the thread:
      https://getsatisfaction.com/fotomoto/...

      I can't guarantee that we'll be able to add this any time soon, but we definitely appreciate having your feedback. Our development team is small and they have lots to do, but we still do our best to help anyone in the world use Fotomoto!

      I hope that helps and kind regards,
      Derek
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