How Do I Include Sales Tax On My Invoice?

How to Make Sure Sales Tax Is Applied to Your Invoices in PhotoBiz

Overview

PhotoBiz allows you to apply sales tax to invoices created through the Quotes & Invoices tool. Sales tax is calculated using your ECommerce tax settings, the client’s billing or shipping address, and whether the invoice item is marked as taxable.

This guide walks you through how to check your sales tax setup, confirm the client address on the invoice, and make sure taxable invoice items are set up correctly. By the end, you will know how to verify that sales tax is being applied to your invoices before sending them to clients.

Prerequisites

Before you begin, make sure you have created at least one sales tax line in your PhotoBiz ECommerce settings.

Sales tax can only be applied to an invoice when:

A sales tax line exists in your ECommerce tax settings
The client’s address matches your tax location rules
The invoice item is marked as taxable
The invoice includes the required location details, such as country, state, and county when needed

If you have not created a tax line yet, see How To Create A New Sales Tax Line

STEP ONE

Log into your PhotoBiz account and click ECOMMERCE in the left-side menu.

At the top of the ECommerce Dashboard, hover over PAYMENTS and click TAXES from the dropdown menu.

You will see a list of your existing tax lines. These tax lines determine how sales tax is calculated across your account, including invoices, ECommerce orders, forms, and client galleries.

If you do not have a tax line created yet, sales tax will not be applied to invoices. Create your tax line before continuing.

How To Create A Sales Tax Line

STEP TWO

Click QUOTES & INVOICES in the left-side menu.

This will open your Quotes & Invoices dashboard, where you can create new quotes, manage invoices, and review previous client billing activity.

STEP THREE

At the top center of the Quotes & Invoices dashboard, click the INVOICES tab.

This will display your existing invoices. From here, you can create a new invoice or open an invoice you have already started.

STEP FOUR

Create a new invoice or open an existing invoice by clicking its Invoice Number.

Once the invoice opens, review the invoice details before sending it to your client. Sales tax will only appear when the invoice has the correct client address, taxable items, and matching tax settings.

STEP FIVE

Review the contact assigned to the invoice and confirm their address information is complete.

Sales tax is calculated based on the client’s billing or shipping address on the invoice. If required address information is missing, sales tax may not appear.

Make sure the contact includes a country and state. If your tax settings are based on county-level rates, the contact must also include the correct county.

If any required address information is missing, edit the contact and add the missing details. Once the address is complete, return to the invoice and review the tax calculation again.

STEP SIX

Review each line item on the invoice and confirm that any item that should collect sales tax is marked as taxable.

Sales tax only applies to taxable invoice items. If an item is not marked as taxable, it will not be included in the tax calculation, even if the client’s address matches one of your tax lines.

After confirming the taxable items and the client’s address, review the invoice total. The sales tax amount should appear before the final total.

FINAL STEP

Review the invoice total before sending it to your client.

When everything is set up correctly, the invoice will show the subtotal, applicable sales tax, and final total. Your client will be able to view the sales tax amount as part of the invoice before completing payment.

WHAT YOUR CLIENT SEES

When sales tax is applied correctly, your client will receive an invoice that includes:

A clear breakdown of all invoice line items
Sales tax automatically calculated and added to the subtotal
A final total that includes the applicable tax
Payment options based on the merchant connected to your PhotoBiz account

Sales tax will only appear on the invoice when the tax settings, client address, and taxable invoice items are all set up correctly.

Additional Options or Helpful Notes

Sales tax settings in ECommerce apply across multiple areas of your PhotoBiz account, including invoices, ECommerce orders, forms, and client galleries.

You can create multiple tax lines for different locations, such as state and county taxes. This is helpful if you need to collect different tax rates based on where your clients are located.

The Sales Tax section in your ECommerce settings also generates tax reports to help with accounting and filing.

PhotoBiz provides tools to configure sales tax, but tax requirements vary by location. If you are unsure what tax rate to charge or whether you need to collect sales tax, consult a qualified tax professional.

Troubleshooting

Sales tax is not showing on my invoice

If sales tax is not appearing on your invoice, review the following items:

Confirm that you have created a sales tax line in ECommerce.
Confirm that the client’s address matches the location rules in your tax settings.
Confirm that the client has a country and state entered.
Confirm that the county is entered if your tax line uses county-level tax.
Confirm that the invoice item is marked as taxable.
Confirm that the invoice has been saved or refreshed after updating the client address or invoice items.

Sales tax looks incorrect

If the sales tax amount does not look correct, review the tax line in your ECommerce settings.

Check the tax rate, state, county, and location rules to make sure they match the tax you need to collect. If you recently updated the client address or changed the invoice items, save the invoice and review the total again.

The client address is complete, but tax still does not apply

If the address is complete and sales tax still does not appear, check whether the invoice item is taxable. Sales tax will not apply to items that are not marked as taxable.

You should also confirm that your tax line matches the client’s location. For example, if your tax line is limited to a specific state or county, the client’s address must match that location for tax to apply.

💡 Pro Tip

The Sales Tax section in your ECommerce settings also generates tax reports to help with accounting!

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