MSPbots will start applying sales tax to subscriptions and upgrades on October 1, 2024. Because of this, the tax rates required by US states will be imposed on all applicable MSPbots transactions.
This article answers the common questions on the sales tax for MSPbots purchases.
Why am I being taxed?
You are being taxed because you are purchasing a taxable MSPbots product or asset in the state or locality specified in your billing address. The tax rate depends on your specific locality.
Which states are taxable and non-taxable?
Below is the list of taxable and tax-exempt states in the United States as of September 2024. This list will expand as MSPbots reaches applicable tax thresholds in additional states.
| TAXABLE | TAX-EXEMPT | ||||
| OH | AL | GA | ME | NV | OK |
| MA | AR | ID | MI | NH | OR |
| TX | CA | IN | MN | NJ | VA |
| WA | DE | KS | MO | NC | WI |
| CO* | FL | LA | MT | ND | WY |
| IL** | |||||
* Sales tax is applicable only in selected cities within Colorado.
** Only Chicago is taxable in Illinois.
My company is a tax-exempt organization. How can I take advantage of this privilege?
The default tax setting for all companies for sales tax is "subject to tax" except when one of the following scenarios applies:
- The company is a tax-exempt organization. Companies should submit their tax exemption certificates to accounting@mspbots.ai for validation. Once verified, any previously collected taxes will be refunded.
- The company has a billing address in non-taxable states listed in the table above.
How is the sales tax calculated?
MSPbots' global tax compliance is powered by Anrok. Domestic USA sales tax obligations are determined based on MSPbots' economic or physical presence in different states. Anrok ensures that MSPbots’ SaaS products are correctly categorized for tax purposes by mapping them to the appropriate tax classifications based on the customer's billing address and the applicable state laws at the time of purchase.