Sales Tax FAQ

Depending on your location, the nature of your business, and in accordance with applicable tax laws, PhoneBurner may charge sales tax in addition to the purchase price of your subscription. Here are some frequently asked questions about sales taxes:

Why does PhoneBurner charge sales tax?

In which US states/cities are taxes charged?

How does PhoneBurner know how much to charge for taxes?

How much will my taxes be?

When will I be charged for taxes?

What if my business is a reseller or tax exempt?

Why does PhoneBurner charge sales tax?
The U.S. Supreme Court ruling in South Dakota v. Wayfair, Inc gave states the ability to require remote sellers of products and services such as PhoneBurner to collect and remit sales tax. 

A business might be required to collect state sales tax reaching revenue, transaction volume, or other thresholds.

In which US states/cities are taxes charged?
Due to the evolving nature of state tax laws, and because PhoneBurner be required to collect sales tax in a given state at any time, the following list is provided only as a guide. As of this writing, PhoneBurner is required to collect sales tax in:

• Arizona
• District of Columbia
• Hawaii
• Louisiana
• Maryland
• Massachusetts
• New Mexico
• New York
• Ohio
• Pennsylvania
• Kentucky
• South Carolina 
• Tennessee
• Texas
• Utah
• Washington
• City of Chicago
• Wisconsin

PhoneBurner charges sales tax based on the billing address in your account. 

How does PhoneBurner know how much to charge for taxes?
PhoneBurner utilizes third-party software to manage and accurately charge sales taxes where we are required to assess them.

How much will my taxes be?
Unfortunately, there is no way to provide an accurate estimate in advance. The taxes assessed could change depending on what services you consume or changing state/local tax laws. However, each invoice will clearly show the taxes charged via a dedicated line item.

When will I be charged for taxes?
Taxes will be charged at the same time you are charged for your PhoneBurner account.

What if my business is a reseller or tax exempt?
With proper documentation, exempt businesses will not be assessed for sales taxes. Please note that even if you have a resellers or exemption certificate you may not be exempt from all taxes in every jurisdiction.

If you believe that you are entitled to tax exemption, please contact our support team at support@phoneburner.com.