SendOwl lets you set up automatic tax collection using TaxJar, which calculates state and local taxes based on buyer location. Create tax rules for each state, enable VAT for EU customers, and download reports from the Reports page to track what you owe.
No matter what kinds of products you sell, it's possible that you'll need to charge sales tax. It all depends on where your business is located and which tax laws affect you. Tax law is complicated and it changes all the time, so be sure to reach out to your local tax authority or a licensed tax professional. That way you'll know what taxes your business is responsible for. And once you know that, SendOwl helps you to charge and keep track of those taxes. We partner with TaxJar for the calculations, and it's all included in your SendOwl account. Let's head to the taxes page of your account. Here's where you'll set up your tax rules. If you're in the US, you'll need to create a tax rule for each state where you need to charge sales tax. Let's say that you have a business based in Arkansas. That state requires sales tax on digital products, so we'll set up a rule for it, and then we can choose how to apply the tax. Most of the time you'll apply it to the order total. That's all there is to it. When you've added a tax rule, SendOwl adds some new fields to the payment page so we can collect your buyer's location. That's how we know whether to add sales tax to an order or not. So let's say that a buyer based in Arkansas wants to buy this product. When they add their state and zip code, TaxJar will automatically calculate the sales tax based on that location, and SendOwl adds it to the order. If you're in the EU or the UK and you need to charge value-added tax, just click this checkbox. Then SendOwl and TaxJar will add the correct taxes to each order based on your buyer's location. And should you need to charge tax somewhere else in the world, you can always create a separate tax rule for that. When it's time to file your sales tax return, head to the Reports page of your account, and there you can download a variety of helpful tax reports. We can't pay your taxes for you, but we can definitely help make the filing easier. And that's how sales tax works in SendOut. For more details, check out our Help Center.
