Recently the supreme court ruled that states can tax for software as a service (SaaS) products. This means that Bonusly will be required to charge sales tax on subscriptions for companies with headquarters in certain states with these laws in place.
Each state defines and regulates sales tax for SaaS a little differently, and most recently AZ, CT, DC, HI, IA, LA, MS, NM, OH, PA, RI, SC, SD, TN, TX, UT, WA, and WV have updated their laws, which requires us to begin this type of collection. Check out this article to learn more about how each state currently defines and collects taxes for SaaS products.
If you are a Bonusly customer this charge may apply to you. In that case, you will see a tax charge on your Bonusly subscription the next time you are invoiced. Tax will be calculated when invoices are created and will take effect on invoices going forward, not retroactive. If you are paid up for the year, you will not see a new charge until the next invoice. This tax only applies to subscription feeds and is not part of any reward funding. You can review all subscription charges on the subscriptions tab in your Payment History
Bonusly does not determine or calculate who is taxed and legally cannot offer any guidance or suggestions about taxes, tax rates, or tax procedures. The article above lists in more detail how each state is handling SaaS sales tax. We recommend checking in with the tax professionals you work with for clarification of how SaaS tax laws may apply to your state and business.
If you have questions about your Bonusly account, send a quick email to [email protected]. We'd be happy to help! 💚