TABLE OF CONTENTS
Overview
Due to laws requiring Marketplace Facilitators to collect and remit sales tax, on January 1, 2021 we launched a new way of calculating, collecting and remitting sales tax information. An announcement is available here.
Locally collects and remits sales tax on payments for Buy Online Pickup in Store (BOPIS), Ship to Store, and Same-day Delivery order in the United States and Canada only. This does not apply to reservations for store pickup (ROPIS) orders.
How should I account for Locally handling sales tax?
US and Canada
Stores should continue to account for Locally sales in their POS system normally. You can view a statement of what has been collected and remitted on your behalf in your Locally dashboard. To view this report, load the "Sales Tax" panel in your Locally dashboard here.
- Click "Show/Hide Totals" to view a given month's breakdown by location and by jurisdiction
- Click Download CSV for a spreadsheet of all transactions and corresponding sales tax details
For most retailers, when remitting taxes to your taxing jurisdictions each month, you will load that month in the Sales Tax panel and deduct the amount remitted by Locally from the amount you remit. Please consult local professionals for additional guidance.
Certain states require Locally provide a certificate or form attesting that we are collecting and remitting taxes. You can request this form from Locally by filling out this form.
Outside the US and Canada
Sales tax is added to each BOPIS, Ship to Store, and Local Delivery order and included in the amount paid by shoppers and transmitted in full to your stripe account.
How is sales tax calculated?
US and Canada
Effective January 1, 2021, Locally utilizes a service that monitors sales tax rates across the United States and Canada and calculates the sales tax rate per item in the shopper's cart based on the tax rules in your local tax jurisdiction. For example, if your jurisdiction taxes shoes and boats differently, those differences will be reflected in the cart.
This applies to any Locally order involving a payment: Buy Online Pickup in Store, Same-Day Delivery, and Ship to Store. This does not apply to Reservations for Store Pickup.
Outside the US and Canada
Locally will use the sales tax rate you've entered in "Step 4: Local Tax Rate" in the Buy It Locally Setup & Configuration panel of your Locally dashboard.
How is sales tax collected and remitted?
US and Canada
Sales Tax is added to the total of each order and paid by the shopper, and visible in your Stripe dashboard. Locally collects the sales tax as a fee deducted from the transaction in Stripe. Load any payment in your Stripe dashboard and hover over the "Fee" section in "Payment details." The sales tax collection displays as "Locally Application Fee" as shown here:
Locally remits the sales tax to each tax jurisdiction in accordance with applicable law. You are not responsible for remitting sales tax on these orders.
Outside the US and Canada
The sales tax amount is included in your Stripe payment. You are responsible for remitting the tax.
There's an issue with how sales tax is being calculated. What should I do?
Please open a support ticket and include the Order # as well as any additional information that will help us troubleshoot this quickly for you.