Beginning July 1st, 2019, Kinsta will be adding sales tax to invoices for customers located in some states in the United States. In this article we’ll explain which states are affected and how this may impact you.
- What Is Sales Tax?
- Which States Are Affected By US Sales Tax?
- How Does This Affect Me?
- Sales Tax Exemptions
- What Happens On July 1st, 2019?
- Will My Sales Tax Be Refunded from Past Invoices?
What Is Sales Tax?
Sales tax is a consumption tax imposed by the government on the sale of goods and services. Sales tax is governed by states and may also be charged by local municipalities so the percentage varies from one city and state to the next. You can read more about sales tax at usa.gov.
Which States Are Affected By US Sales Tax?
Sales tax is calculated and applied based on the location where services are performed. We determine the location where our services are being used by looking at the address you provide when you sign up. You can review and update this address in MyKinsta.
Sales tax be applied to the invoices of customers utilizing our services in any of the following states:
Additional states will be added to this list over time. When it is determined that Kinsta will need to collect sales tax in an additional state we will provide an update to affected customers prior to the implementation of the change.
How Does This Affect Me?
If you are a US resident or your company is registered in the US, we are obliged to apply sales tax to your purchases if you are located in a state which requires it (see list above).
For example, at the time of writing, the sales tax rate in Dallas, Texas is 8.25%. If you purchase a Pro plan (list price of $60 at the time of writing) your checkout total will be $64.95. This consists of the $60 list price and a 8.25% tax which is $4.95. These items are shown separately on the checkout page and in your invoices, and are added automatically based on the stated you are located in.
Sales Tax Exemptions
Under certain circumstances, you or your company might be eligible for sales tax exemption. Sales tax exemptions are handled on a state-by-state basis. If your organization is exempt from sales tax please reach out to our support team and provide a copy of your tax exemption certificate.
For more info regarding tax exemptions, you can check with your state’s department of revenue.
What Happens On July 1st, 2019?
From this date onward Kinsta will start applying sales tax to all US residents and US registered companies located in a state which requires it (see list above). We will also have a notice in the MyKinsta dashboard about this change.
Will My Sales Tax Be Refunded from Past Invoices?
Unfortunately not. You are responsible for providing us with a copy of your tax exemption certificate. We cannot refund sales tax collected prior to having this on file.