Sales tax for purchases in Trello
Why are you charging us sales tax?
Some states consider our software to be taxable and if we have a presence in that state (i.e. we employ someone in that state) we are required to collect and remit that tax. This article explains why in more detail. States consider our software taxable even if it is delivered as software as a service (SAAS) and it is not running on your servers. For example, New York State relies on New York Regulation 20 NYCRR §526.7(e)(4) to tax New York purchases of our software. See DOF advisory opinions here, here, and here.
How do you decide which state to charge me tax for?
We make our best effort to locate where the software is being delivered to or being used by using your billing address. If this is not the correct location that we should be using, please contact us and we can make this adjustment.
What if I'm tax-exempt?
All you need to do is email us your tax-exempt certificate and we can adjust your location.
You weren't charging me tax before. Why are you now?
If you are in New York, it is because the law wasn't very clear on whether we needed to charge tax on these services. But New York State has told us that we do.
If you are in a different state, we just hired an employee in the state and now are required to collect and remit sales tax to your state because we are considered to have "nexus" or a presence in your state.