Are you a seller looking to apply taxes to your listings but not sure where to start? In this article, we will walk you through the steps to enable tax on your listings effectively.
Before you set up taxes, verify whether you are obligated to charge sales taxes to your customers, and whether your product is taxable.
Navigating to Members Area:
The first step is to navigate to the Members Area in your account. Once you are in the Members Area.
go to Selling, then click on Seller Tools. From there, locate Global Settings and proceed to "Enable Tax on Listings" by selecting the checkbox.
After "Enabling Tax on Listings", the next step is to select one or multiple tax rules that you wish to apply from the "Tax Type" list below.
For example, you can select tax rules for New York, Florida, and Texas.
Applying Tax When Selling:
When you are ready to sell an item, on the sell page - make sure to select "Apply Tax" and leave it at the "Default" setting. This will enable all three of the example state taxes that you have selected previously - "New York, Florida, and Texas". You can always go back to Global Settings if you need to make changes.
Now, them three example tax rules you setup in your Global Settings page for "New York", "Florida", and "Texas" will apply and only residents in them three countries/states will see the tax amount and will be charged at the point of sale.
If however you select only one tax rate from the "Tax Type" list rules you setup, then only the one tax rate you selected will apply and the other two tax rates will be canceled.
If you sell only in your Local country/state and your business is tax registered then you only need to select your local country/state.
If you’re place of supply of your products or service is in another country/state you may need to register and account for tax in the country of supply.
Regardless of where you sell, local or location based, the setup process is the same.
If you do not need to apply any tax rules then do not Enable Tax on Listings on your Global Settings page or simply do not select the Apply Tax option on the sell page.
Make sure to update your tax registration fields in your tax section on your > Personal Information page.
By following these simple steps, you can easily enable tax on your listings as a tax registered business. Don't forget to check back regularly to ensure that your tax settings are up to date and accurate.
If the tax rate is correct, it should be added within 48 hours, in most cases within 24 hours.