In this article, we'll cover Sales Taxes that you are obligated to collect as a Seller. We'll go over setting up the correct tax rates and methods on your website, and show you two ways of approaching this.
Sales tax is determined based on the shipping address of an order, with zip codes being used to calculate the applicable tax rate. By default, sales tax is automatically applied to orders shipped to your home state, while manual tax methods may be required for other states to ensure compliance with local regulations.
ART STOREFRONTS RECOMMENDATION
Art Storefronts cannot give you specific tax advice. We are not accountants nor are we versed in the tax laws of all communities. If you require specific information or assistance, you will need to contact a CPA local to you or contact your local tax agency for more information.
Creating Tax Methods
The state where your business is registered will have its own set rate for sales taxes. To find out the exact rate. we recommend conducting your own research to ensure you have the best information. This information can be provided by a relevant tax authority in your local area. Once you have the Tax Rate, you can create a Custom Tax Method in the "Tax Methods" section on your website. When testing tax setups, ensure you use a non-exempt account. Tax-exempt accounts will not have sales tax applied, which can lead to confusion when verifying tax configurations.
Sales tax calculations on Art Storefronts are based on the shipping address and utilize zip codes to determine the applicable rate. This ensures accurate tax application for orders.
From the Jump to menu please select "Tax Methods" and you will be taken to the page where you can set up the Sales Taxes you wish to charge for any sales that match the parameters you put in. Screenshot_2.png
Tax Methods can be set up in 2 different ways. You can use our "Automatic Tax Method" feature, which will automatically charge the correct tax rate for any in-state purchases made on your site.
For this option, the rate will be calculated based on the data from www.avalara.com and is based on the State, City, and Zip code you have entered in your Site Settings when you were setting up your Business Information. This is the easiest and most accurate way of setting up your Sales Taxes.
Screenshot_3.png If you decide to go with Auto Tax Method, make sure to delete any Custom Tax Methods as they will always override Auto Tax Methods Additionally, conflicting Custom Tax Methods can lead to issues where taxes may apply inconsistently, such as only specific ZIP codes being taxed or overrides causing incorrect tax calculations. By removing these conflicts, you can trust the Automatic Tax Method to provide accurate and consistent calculations for all applicable orders.
Second way of setting up Tax Methods is to create a "Custom Tax Method", and manually determine the rate you'd like to charge and the locations in which you'd like to collect taxes. By default, your website comes with a "Sales Tax" Tax Method you can use as a template. If this is the method you'd like to use, make sure that the "Tax Calculation determined by:" dropdown is set to "Tax Methods Only"
When setting up Custom Tax Methods, consider states where you have nexus, as you may be required to collect taxes in those states. Consulting Avalara's tax tables can help ensure accurate rates.
If you decide to go with Custom Tax Method, make sure you are aware of the proper and correct taxes within the area you are setting the parameters. Taxes cannot simply be made up, or this could impact your taxes at the end of the year. This information can be provided by a relevant tax authority in your local area Screenshot_4.png Clicking on the Custom Tax Method will open up the back-end page of the selected method where you can determine and specify when the method will be triggered, and how much it will charge.
First up, you need to make sure it is set to Available, and give it a name and an optional internal description Screenshot_5.png
Next step would be to determine a location. This means that you can choose a Country and a State where this tax method will charge taxes. Any order placed on your site with a shipping address within the selected Country/State will be charged additional tax upon checkout.
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Next up is "Rate". This is the field where you can specify the Tax Rate for this Custom Tax Method. Once you know what rate you are obligated to collect, please enter the number and decimal only, with no special characters (!, @,#,$,%, etc.)
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If the tax laws in your state require that you include Shipping in the calculation, you can do so in the field below which is labeled "Include Shipping In Calculation" Screenshot_8.png
Handling Vendor/Fulfillment Orders
Vendor or fulfillment orders are subject to different tax rules:
Tax on Vendor Orders: Sales tax is charged based on your tax-exempt status with the vendor. If you lack an exemption certificate for a state, tax will be applied to vendor orders shipped there.
Art Storefronts’ Legal Obligations: Art Storefronts is required to collect sales tax on vendor orders where applicable, even if no tax is shown at checkout.
Tax Exemption Processes
To avoid sales tax on vendor orders, you must provide a valid exemption certificate for the state in question. Note that exemption certificates are typically only available for states where you have nexus.
Troubleshooting
When I choose my home state at checkout, taxes aren’t being calculated.
If you’re not seeing taxes being calculated, you first need to make sure you’ve selected your state. Go to the back-end of the site. Click Site Settings. Scroll down and make sure your state is set.
You may not have selected the Automatic option. Go back. Select it and save the page.
My page won’t save.
You may need to use an approved browser. If you’re using anything other than Firefox or Chrome, you should stop and use either Chrome or Firefox.
If you’re using an approved browser, you may need to clear your cache. Check out how to clear the cache by using the article on How To: Clear your Cache.
ZIP code-specific issues with Custom Tax Methods
If Custom Tax Methods are created based on specific ZIP codes or states, taxes might apply inconsistently — for example, only to certain ZIP codes while excluding others.
Check and ensure that Custom Tax Methods are configured to align with your intended tax application scope. Remove conflicting methods if needed.
Test orders in Texas showing zero tax
Ensure the account used for testing is not marked as tax-exempt. A tax-exempt status prevents sales tax from being applied during test orders.
Use a non-exempt test contact to verify that the tax method charges correctly.