If you are a customer living in Canada or the US, Practice Better must charge sales taxes on products and services you subscribe to and use each month. You can see the applicable taxes on a separate line on your Practice Better subscription invoices. This doesn’t apply to your services charged to your clients.
- Why is Practice Better charging sales tax?
- How is sales tax calculated?
- What happens with the sales tax collected?
- I’ve heard some businesses, like non-profits, are exempt from these taxes. How do I know if I’m tax-exempt?
- What happens if I move to a different state or update my address?
- Where can I see what I'm being charged for sales tax?
Why is Practice Better charging sales tax?
For customers who use our platform in the United States, Practice Better is required to charge and collect sales taxes in certain jurisdictions where we have met the taxability of our products and have exceeded the economic thresholds within that location.
For customers located in the United States where Practice Better’s products are taxable but we have not met the economic thresholds, no sales tax will be charged. However, the taxability of products and services will be subject to change as we meet economic thresholds for State and Local tax laws.
For customers located in Canada, Practice Better must collect provincial sales tax on Practice Better subscription fees paid by our customers in accordance with provincial sales tax regulations.
How is sales tax calculated?
On your invoice, sales tax is calculated based on the determination of the taxability of the product(s) you purchased, the billing address information provided by you that is associated with your credit card, and the tax rate of the applicable jurisdiction where you are located.
What happens with the sales tax collected?
The entire sales tax amount charged and paid on Practice Better subscription plans is remitted to the required tax agency. Practice Better retains none of the sales taxes collected.
I’ve heard some businesses, like non-profits, are exempt from these taxes. How do I know if I’m tax-exempt?
Certain businesses, such as non-profit organizations, educational institutions, and other organizations, may have tax exemptions in various jurisdictions. For Practice Better to update your tax exemption status, you must provide a copy of your physical exemption certificate.
You can send a copy of your certificate to help@practicebetter.io for our team to review.
What happens if I move to a different state/province or update my address?
Moving to a different state or province or updating your address may change the taxability of the products going forward.
Where can I see what I'm being charged for sales tax?
Sales tax is applied directly to your invoice for each Practice Better product and service you subscribe to and/or use each month. This does not apply to services you charge your clients.
To view your invoices, you can follow this guide. The sales tax will be listed as a separate line item on the invoice.