Sales & Use Tax FAQ
Note: This article is relevant for customers in the United States only.
Overview
Section titled “Overview”As of August 1, 2022, Stack began collecting sales tax on applicable subscription-based product sales. Starting January 1, 2023, sales tax will also apply to usage-based product sales billed through the in-app wallet system.
Topics Covered
Section titled “Topics Covered”- January 2024 Update on In-App Wallet Usage Taxation
- Frequently Asked Questions
January 2024 Update on In-App Wallet Usage Taxation
Section titled “January 2024 Update on In-App Wallet Usage Taxation”- For customers with usage product sales under $10,000 per month: Sales tax will be applied to all usage sales for the month and billed on the 1st of the following month.
- For customers with usage product sales over $10,000 per month: Sales tax will be applied to usage sales from the 1st to the 15th of the month and billed on the 16th. Sales from the 16th to the end of the month will be billed on the 1st of the following month.
Frequently Asked Questions
Section titled “Frequently Asked Questions”Why is Stack charging me Sales & Use tax?
Section titled “Why is Stack charging me Sales & Use tax?”Stack has conducted a Nexus Study, which determined that some of our products and services are taxable. This follows the 2018 South Dakota v. Wayfair ruling, which changed the rules regarding physical and economic nexus for sales tax.
Which states are required to collect Sales & Use tax?
Section titled “Which states are required to collect Sales & Use tax?”Sales & Use tax requirements vary by state. For a quick reference, visit the Sales Tax Institute. We recommend consulting your local tax advisor for detailed information.
My company is tax exempt or self-remits sales tax. What should I do?
Section titled “My company is tax exempt or self-remits sales tax. What should I do?”To continue purchasing on a sales tax-exempt basis, complete a new sales tax exemption certificate. You can use the Multistate Tax Commission’s Uniform Sales & Use Tax Exemption/Resale Certificate or another state-approved exemption certificate. If you’ve already completed this form or paid use tax, send any supporting documentation to salestax@stack.com.
I have more questions. Who can I contact?
Section titled “I have more questions. Who can I contact?”For questions about the tax or its applicability, please consult your company’s tax advisor or email your inquiries to salestax@stack.com.
Why are we applying for a tax exemption for intangible products?
Section titled “Why are we applying for a tax exemption for intangible products?”Sales tax now applies to more than just tangible products. Some of the products offered by Stack are subject to these taxes.
In what situation would someone have a sales tax exemption form?
Section titled “In what situation would someone have a sales tax exemption form?”Stack is required to collect sales taxes on certain products unless a resale certificate is provided. If you’re unsure whether you’re a reseller, please contact your CPA or tax advisor.
Viewing Transaction Details
Section titled “Viewing Transaction Details”You can view transaction details in your Wallet. Log into your account, navigate to Settings, then Billing, and select Wallet & Transactions. Under Detailed Transactions, click the chevron “>” for more information.