Partner Programs

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Partner Programs: US State Sales Tax Overview and FAQs

ActiveCampaign provides various services to businesses in the United States, and it’s essential to understand how state sales tax may apply to these services. For companies operating within the U.S., whether you are an Agency Commission Partner or a Reseller Partner, state sales tax implications can affect your billing and overall costs. This article aims to provide an overview of the sales tax as it relates to Partner Programs, detailing the consequences for partners and frequently asked questions regarding this topic.

Introduction

The application of state sales tax by ActiveCampaign is dependent on the business’s location. The taxability of products and services varies significantly between states. When applicable, ActiveCampaign is responsible for collecting and remitting sales tax based on the billing address associated with the transaction. It's crucial for partners to understand how these policies apply and how they can manage their clients' expectations regarding sales tax.

How to Access this Feature

You can manage and view sales tax information from your Partner Dashboard within the ActiveCampaign platform. Specifically, all billing information, including applicable sales tax, can be found in the Billing Profiles section.

Step-by-Step Instructions

1. **Log into your ActiveCampaign Partner Dashboard**: Navigate to [1](https://www.activecampaign.com/partner/cx_agency_main.php). 2. **Click on "Billing Profiles"**: This section will provide access to all billing-related functionalities, including sales tax information. 3. **Review Billing Information**: Here, you can see how sales tax is calculated based on your state and client’s location.

Configuration Options and Settings

Within the Billing Profiles section of the Partner Dashboard, partners can manage several critical configuration options: - Billing Address: Ensure that your billing address is accurate, as it affects the calculation of sales tax. - Exemption Certificates: If you are tax-exempt, you need to provide valid documentation such as a Tax Exemption Certificate or other state-approved support.

Best Practices and Tips

- **Stay Informed About State Tax Laws**: Different states have unique sales tax regulations. It is advisable for partners, especially Reseller Partners, to consult with a tax professional for guidance. - **Notify Clients**: Keep your clients informed about potential sales tax charges, so they are not surprised by their bills. - **Documentation for Exemptions**: If a client believes they are exempt from sales tax, request they provide the necessary documentation upfront to avoid any billing discrepancies later. - **Trial Accounts**: Remember that sales tax will not apply during trial periods but will be added upon transitioning to paid subscriptions.

Common Use Cases with Examples

- **Agency Commission Partners**: These partners bill their clients directly via ActiveCampaign. For example, if a service priced at $20.00 is subject to a 5% sales tax, the billing would break down as follows:

  - Retail AC Price: $20.00
  - Sales Tax Rate: 5%
  - Sales Tax Amount: $1.00
  - Total Client Payment Due: $21.00

- **Reseller Partners**: If you’re billing clients directly, the sales tax will reflect on invoices in the ActiveCampaign Partner Portal. Consider a Wholesale Price of $20.00 with a 5% sales tax:

  - Wholesale Price: $20.00
  - Sales Tax Amount: $1.00
  - Total Payment to ActiveCampaign: $21.00
  - Retail Price charged to the client (assuming a discount): $27.67 (inclusive of sales tax).

Troubleshooting Section

If you encounter issues with sales tax being incorrectly applied, consider the following steps: - **Confirm Your Billing Address**: Ensure that the billing address entered in your Billing Profiles is accurate. - **Check State Regulations**: Verify the sales tax applicability based on your state laws using the latest legislative updates or consult a tax professional. - **Documentation for Exemptions**: If you’ve submitted documentation for tax exempt status and it hasn't been recognized, reach out to billing@activecampaign.com with your exemption proof.

Related Features

- **Billing Profiles**: Manage all aspects of your billing and payment settings in the Partner Dashboard. - **Taxes and Invoicing**: Review the broader implications of taxes on invoicing within the ActiveCampaign platform. - **Terms of Service**: Reference the [2](https://www.activecampaign.com/legal/terms-of-service) for comprehensive guidelines on billing and tax regulations.

FAQ Section

What if my client is using a trial account? Tax is not charged on trial accounts. It will be applied once the account transitions to a paid subscription.

How does this impact me as an Agency Commission Partner? Agency Commission Partners do not need to make changes due to this tax application but should communicate updates to their clients.

What should I do if I believe I should be exempt from tax? Contact billing@activecampaign.com with any valid support for exemption, per state regulations.

How can I view billing details? Visit your Partner Dashboard and check the Billing Profiles section for up-to-date billing information.

Do I need to pass on sales tax to my clients? ActiveCampaign does not provide guidance for Reseller Partners on whether they should pass these costs through to clients.

How do I manage sales tax if I’m in a different state? Consult with a tax professional to understand local tax compliance.

For detailed guidance, please ensure to review the related sections provided in this article to maximize your understanding and compliance regarding ActiveCampaign's sales tax policies. ```