Sample answers to common questions
Why am I being charged for sales tax?
For customers located in the United States, [Company] is required to charge and collect taxes on sales in certain jurisdictions that have laws requiring the taxation of our products AND [Company] has either a physical presence or has met certain economic thresholds within that jurisdiction. These taxes vary by jurisdiction but include sales taxes and excise or privilege taxes.
For customers located in the United States where [Company]’s products are taxable but [Company] does not have a physical presence or has not yet met the economic thresholds, no sales tax will be charged. This however may change in the future due to changes in law or [Company] meeting any of the requirements for charging and collecting tax in that jurisdiction.
What happens with the sales tax collected?
The entire amount charged to a customer for sales tax is remitted to the required jurisdiction and no amounts are retained by [Company].
How is sales tax calculated?
On your invoice, sales tax is calculated based on [Company]’s determination of the taxability of the product(s) you purchased, the address information provided by you and the tax rate of the applicable jurisdiction where you are located. If you need to update your address information please contact [firstname.lastname@example.org].
What if my business is exempt from sales tax?
Certain businesses such as non-profit organizations, educational institutions and other organizations may have tax exemptions in various jurisdictions. If your business has an exemption certificate please contact [email@example.com] and provide a copy of the exemption certificate to [Company].