If you're looking at this page, you probably have some questions about the inclusion of sales tax charges which will start appearing on relevant invoices from April 1 2020. Please read through the FAQs below, and if you can't find what you're looking for, please contact us.
Why am I being charged sales tax now and not before?
We have recently conducted a review of the services we provide to ensure compliance with the sales tax laws in the various states in which we do business. During the course of this review, it has been determined that our services may be subject to sales tax in your state. We are obligated to collect sales tax on taxable sales on behalf of the taxing jurisdictions in which we do business.
What states are subject to sales tax and at what rate?
Sales tax rates vary across different states and vary within each state depending on your business’ address. Sales tax rates may vary to the sales tax rate table below.
State | Sales Tax Rate |
Arizona | 7.75% to 9.12% |
Connecticut | 1% to 6.35% |
Colorado (Denver only) | 4.81% |
Illinois (Chicago only) | 9.00% |
Iowa | 6.00% |
Louisiana | 4.45% |
Massachusetts | 6.25% |
New Mexico | 5.125% |
New York | 8.37% to 8.88% |
Ohio | 7.19% to 7.50% |
Pennsylvania | 6.00% to 6.20% |
South Dakota | 4.50% |
Tennessee | 7.00% |
Texas | 6.60% |
Utah | 7.16% to 7.75% |
Washington | 8.11% to 10.51% |
When will I be charged sales tax (if any)?
All invoices from 1 April 2020 will have sales tax listed as a separate line item; however, in states/jurisdictions where this is not applicable (or for customers with a valid exemption certificate), this will appear as zero cost.
For pre-paid customers who are eligible for sales tax, any transactions made from 1 April 2020 onwards will have the relevant sales tax applied
For post-paid customers who are eligible for sales tax, your May 1 2020 invoice will include sales tax on charges incurred from April 1 2020.
I have an exemption certificate. What should I do?
All customers that hold a valid exemption certificate must provide this to us so we can issue a tax invoice that is exempt from tax. Please forward the exemption certificate to collections@messagemedia.com.au
We will charge applicable sales tax if no exemption certificate is provided by the customer.
Why have you updated your terms and conditions?
We have updated our terms and conditions in clause 25 (Taxes) and the definition of Taxes to provide clarity on the exemption process and any withholding tax.
Who can I talk to about this?
We understand that increases in invoice costs can be an unwelcome challenge, so feel if you have any questions or concerns about this matter, please contact us via email at collections@messagemedia.com, or you can call us on (415) 745-3442 if you prefer.
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