In order to ensure we maintain compliance with local tax laws and regulations, User Interviews is now registered to collect sales taxes in certain states within the United States. This means that you may see new tax charges on invoices issued by User Interviews on or after April 1, 2023.
This change applies to all customers in the United States who are located in jurisdictions where User Interviews has established a sales tax nexus.
What is sales tax?
Sales tax is a tax assessed by a local taxing authority (state department of revenue) on the sale of a product or service. Sales taxes are collected from customers by the seller (User Interviews) via an invoice, and are passed along to the taxing authority by the seller.
What is sales tax nexus?
When a company has established a sales tax nexus in a location, that means that the company is required to collect sales taxes from customers in that location. Nexus can be established by having a physical presence somewhere (office, warehouse, employees there), or by selling goods or services above a defined economic threshold ($$$/year, XXX transactions/year). Economic nexus thresholds vary from state to state.
In which states are User Interviews required to charge sales taxes?
As a growing company with remote workers across the United States, the answer to this question changes from time to time. We at User Interviews are continually monitoring tax nexus thresholds in local jurisdictions to ensure that we’re maintaining compliance with local tax laws and regulations.
Why is User Interviews charging sales tax on my invoices?
You’re located in a state/jurisdiction where User Interviews has a sales tax nexus and is required to charge sales taxes.
How much does User Interviews charge for sales taxes, and why am I charged sales taxes on some invoice line items, but not others?
The short answer is - it depends! Tax laws vary from state to state, so a customer in New York might be charged a different tax rate than a customer in Texas. Tax rates are set by the local taxing authority, and not by User Interviews. Finally, local taxing authorities assess different sales tax rates by product and service. So, you might not pay any sales tax on participant incentives, while you do have to pay sales taxes on your Research Hub subscription fee.
What address does User Interviews use to determine the amount of sales tax to charge?
User Interviews uses the billing address on your team billing page in order to determine your location for sales tax calculations.
I’m located in the United States, but I don’t see sales taxes on my invoice. Why not, and could that change?
You must be located in a state where User Interviews hasn’t yet established sales tax nexus, which could change in the future if User Interviews establishes a physical presence or exceeds an economic threshold in your state (see “What is sales tax nexus?”). Another possibility is that User Interviews does have a tax nexus in your state, but you’ve purchased something not subject to sales tax in your state.
I thought companies providing digital services didn’t have to charge sales taxes. What gives?
Tax laws change from time to time, and tax laws related to newer and growing industries, like digital services, are changing rapidly as local taxing authorities respond to new business models. These rules are constantly changing through the actions taken by state courts and legislatures.
I see sales tax charged on a current invoice, but why don’t I see sales taxes on previous invoices?
There are two main reasons why you might now be seeing sales tax charges where you didn’t see them before:
- Tax laws changed in your state, and services that had previously not been taxable are now subject to sales tax.
- User Interviews was not previously registered to collect and file sales taxes in your state, but now has sales tax nexus in your state and is required to collect these taxes (see “What is sales tax nexus?”).
I’m a not-for-profit organization, so I don’t have to pay sales taxes. How do I make sure User Interviews doesn’t charge sales taxes on my invoices?
If you have a valid sales tax exemption certificate, please get in touch with us at billing@userinterviews.com so we can update our records so that you’re not charged sales taxes.
