Why is CollaborateMD collecting Sales Tax?
Economic Nexus dictates that businesses based out of one state must collect sales tax in a state where they have a physical or economic (digital) presence if they earn above the state’s thresholds ($ amount or # of transactions). CollaborateMD must register as a seller with the state once the state’s thresholds are reached in order to collect and remit taxes.
When will I have to start paying sales tax nexus?
Starting 07/01/2020 (invoice generated on 08/01/2020) sales tax nexus will be charged on applicable services as required by your state’s economic nexus laws.
How do I know if I will be required to pay Sales Tax nexus?
There are currently 43 states that have economic nexus laws in place. If you are in any of the 43 states and the corresponding state thresholds are met, you will see any applicable sales taxes on your monthly invoice starting with the 08/1/2020 (July) statement.
Are there any states with no sales tax nexus laws?
There are 7 states that don’t have economic nexus laws and are exempt from sales tax nexus.
How much Sales Tax will I have to Pay?
The amount of sales tax will depend on the state’s guidelines, and if the state’s thresholds have been met (see below):