Tax Settings and Invoicing

Vendors on the LocalZ Marketplace are responsible for managing their own tax obligations. This includes collecting and reporting sales tax where required by law, as well as maintaining proper records for accounting purposes. This guide outlines what you need to do to manage tax settings and invoices on your store.

• LocalZ does not collect or remit taxes on your behalf

• You are solely responsible for understanding and complying with local, state, and federal tax laws

• If you’re required to collect sales tax, you must build it into your product pricing or manage it through your own invoicing records

Since product prices on LocalZ must include free shipping and no added fees, you have two options for handling sales tax:

If you are required to collect sales tax in your state:

• Calculate the average sales tax rate you need to charge

• Add that amount to your product price

• Keep detailed records of what portion of each sale is allocated for tax

This method keeps the checkout process simple for customers and complies with the platform’s flat-price policy.

If you use accounting software or a tax management system:

• Track your sales outside the LocalZ dashboard

• Run monthly or quarterly sales reports

• Pay taxes directly to your local jurisdiction based on your business registration

This method is often used by vendors who already file sales tax in multiple states.

LocalZ does not issue invoices directly to customers on behalf of vendors. If your business is required to issue invoices, you should:

• Use third-party invoicing software (e.g., QuickBooks, Wave, or Zoho Invoice)

• Generate and email invoices to customers manually when requested

• Keep digital records of all completed sales for tax reporting

Some vendors choose to include a printed invoice or receipt in the package for the customer.

To assist with reporting:

1. Log in to your Vendor Dashboard

2. Go to Earnings or Reports

3. Download a CSV or summary of your completed sales, including:

   • Gross sales

   • Commission deducted

   • Net earnings

Use these records for bookkeeping, tax preparation, and financial tracking.

• Register for a sales tax permit in your state (if required)

• Know which states require you to collect sales tax (especially if you ship across state lines frequently)

• Keep a log of total gross sales per state or region

• Consult with a tax professional or accountant for specific advice

After reviewing your tax responsibilities:

• Set up or confirm your invoicing system

• Review your earnings dashboard monthly

• Proceed to the next article: Offering Coupons and Discounts