- Why does my invoice include sales tax?
Our products (i.e. PowerListings & Pages) are subject to state and local sales tax in your jurisdiction.
2. What are the taxable jurisdictions?
As of August 15, 2016, the taxable jurisdictions are as below. We will review the taxable jurisdictions as they are subject to change based on constantly evolving facts and circumstances.
- Chicago (not other parts of IL)*** (see answer to question 6 regarding special rate)
- Connecticut*** (see answer to question 6 regarding special rate)
- New York
- Washington state
- I have been a customer for some time, why are you charging me sales tax now?
Tax legislation surrounding SaaS products like ours is continuously evolving and is far from being black and white. After consultation from our accounting firm and several inquiries from state and local taxing authorities, Yext will now be required to charge sales tax in jurisdictions where we have determined that our products are taxable in / we have a physical presence in (i.e. legal obligation).
- If I provide you with a reseller / exemption certificate, do I need to collect sales tax from my customers on sales related to Yext products?
Yes, if you do not collect sales tax from your customers then for sales tax purposes, you are not qualified for the reseller exemption. This would be common for marketing / advertising agencies (typically, non-taxable services) who usually charge their customers just one fee for their services and do not collect sales tax.
- What is my jurisdiction based on?
The jurisdiction that sales tax is calculated on is based on where our product is used. This is typically referred to as a “sold to” address. We often use the same address for the “sold to” as the “bill to” (i.e. address shown on your invoice). If you have a different “sold to” than your “bill to”, please notify your account manager and AR@yext.com. Please note, the “sold to” address cannot be a PO box.
- What is the sales tax rate in my jurisdiction?
You can find the sales tax rate by clicking here and inputting your “sold to” (defined in question 5) address zip code. Please note that Yext products are subject to different rates in Chicago (5.25%) and Connecticut (1%) than as shown in the link. All other jurisdictions are correct.
- I am a reseller, shouldn’t I be exempt from sales tax?
Correct, please provide a valid (i.e. correctly completed and signed) reseller / exemption certificate and we will remove sales tax on any future invoices. Please note that we are unable to refund sales tax already collected / invoiced as it was already included the tax remittance in our tax returns. However, this tax paid could potentially be deductible on your sales and use tax return, please consult with your tax preparer for more information.
- How do I get a reseller / exemption certificate?
If you go on your jurisdiction’s business website (a few examples below), it should provide details on how to register as a reseller and how to obtain / complete a reseller / exemption certificate. For more information, please consult your tax preparer.
Texas - Click Here