Why is Sales Tax Being Charged on my Commerce7 Invoice? (U.S. Only)

Sales Tax will be charged on Commerce7 invoices beginning Sept 4, 2024 (U.S. only)

Starting September 4, 2024, Sales Tax will be applied to invoices issued by Commerce7.

This change is not a decision made by Commerce7, but rather a response to new legislation - and is being implemented by Fullsteam Payments.

Your business location will define precisely what charges will be assessed, as each state and local tax code is different. 

FAQ

Q: Sales tax appeared on my most recent invoice. What happened? Did something change?

A: Recent changes in legislation are narrowing down the list of services that remain exempt from sales tax. More than half of states impose sales tax on “SaaS” products. That means we need to collect it.

Q: How do I know what’s subject to sales tax?

A: Sales tax will be calculated on your total monthly Commerce7 invoice. (However, laws vary by state for taxability of services).

Q: How does Fullsteam Payments identify the appropriate tax rate(s) to apply to each invoice?

A: Your tax rate will be automatically pulled based on your billing address.

Q: The state my business operates in does NOT charge sales tax. Am I going to be charged?

A: No.

Q: My company is a 501(c)(3); shouldn’t we be exempt from sales tax?

A: 501(c)(3) nonprofit organizations are exempt from income tax; not sales tax. Certain nonprofits, public entities, and charitable organizations may qualify for sales tax exemptions, but rules vary by state. Please consult your tax advisor for more information.

Q: Why am I being charged multiple sales taxes?

A: Based on your billing address, your service may be subject to both state AND local sales taxes.