Sales tax overview and FAQs

```mediawiki Navigation: Main_Page > Billing > Sales Tax > Sales tax overview and FAQs

Sales Tax Overview and FAQs

ActiveCampaign is an essential platform for businesses looking to optimize their customer engagement, but understanding the implications of sales tax on subscriptions is vital for compliance and financial management. This article provides a comprehensive overview of how sales tax applies to ActiveCampaign purchases, including relevant FAQs to help clarify common concerns.

Introduction

Sales tax may be applicable to your ActiveCampaign purchase if your business is based in the United States. It is critical to understand that sales tax is calculated based on your billing address and will appear as a separate line item on your invoice during checkout. Additionally, certain organizations, such as nonprofits and educational institutions, may qualify for tax exemption. This overview will detail how sales tax works in relation to ActiveCampaign, how to manage your billing information, and address frequently asked questions.

How to Access This Feature

To manage your billing information, including understanding sales tax implications, you can access your ActiveCampaign account settings. Navigate through your account dashboard to view your current billing information and make any necessary updates related to your tax status.

Step-by-Step Instructions

1. **Log in** to your ActiveCampaign account. 2. Click on your profile avatar located in the top right corner. 3. Select **Billing** from the dropdown menu. 4. Here you will find your billing information, including the sales tax applied to your account.

For businesses seeking tax exemption: 1. Ensure you have a valid exemption certificate or applicable documentation. 2. Contact ActiveCampaign by emailing billing@activecampaign.com, attaching your exemption documentation for review.

Configuration Options and Settings

When handling sales tax within ActiveCampaign, the following configuration options are pertinent:

• Billing Address: Your sales tax will be calculated based on this information. Ensure that your billing address is up-to-date to avoid any discrepancies.
• Tax Exemption Documentation: If applicable, you'll need to provide a valid exemption certificate in a form acceptable to ActiveCampaign to be excluded from sales tax charges.

Best Practices and Tips

- **Regularly Update Billing Information**: It's crucial to keep your billing address current to ensure the correct sales tax rate is applied and to avoid potential billing issues. - **Review State Tax Regulations**: Each state may have different criteria for taxable items and services. Familiarize yourself with state laws that may pertain to your business. - **Keep Documentation Handy**: For tax-exempt entities, maintain organized records of your exemption certificates and licenses to streamline the approval process.

Common Use Cases with Examples

- **A Small Nonprofit Organization**: A nonprofit organization based in California may apply for tax exemption by submitting an appropriate exemption certificate. If approved, the organization would not be charged sales tax for their ActiveCampaign subscription. - **Educational Institution**: A public school may also qualify for tax-exempt status by presenting the necessary documentation, thus enabling them to use ActiveCampaign's services without additional costs from sales tax.

Troubleshooting Section

If you encounter issues regarding your sales tax status: - Ensure your billing address is correct by verifying in the **Billing** section of your account. - If you believe you should qualify for a tax exemption, complete documentation must be submitted to ActiveCampaign for review. - For further assistance, contact ActiveCampaign via their official support channels for clarification on specific tax-related queries.

Related Features

For more information or to resolve related inquiries, consider visiting: - Billing - Sales Tax

FAQ

Q1: Why does ActiveCampaign apply sales tax to invoices? A: ActiveCampaign services may be taxable in specific US locations, as outlined in the Terms of Service. ActiveCampaign is authorized to charge applicable sales taxes based on this.

Q2: What if I’m using a trial account? A: Trials will not incur sales tax; however, tax may be applied once you switch to a paid subscription with a billing address in a taxable area.

Q3: How do I know if I qualify for a tax exemption? A: If you believe you are exempt, you should contact billing@activecampaign.com with proof of exemption such as a valid Tax Exemption Certificate.

Q4: How do I view and update my billing address? A: You can learn how to update your billing information by visiting the "How do I view and update my billing information?" help article provided by ActiveCampaign.

Q5: How do I change my VAT number? A: Instructions on updating your VAT number can be found in the help article titled "How do I change my VAT number with ActiveCampaign?"

By following the guidelines in this article, users can effectively manage their billing practices related to sales tax, ensuring compliance and clarity in their ActiveCampaign experience. ```