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Why am I seeing tax on my payment?
Why am I seeing tax on my payment?

Understanding sales tax

James Dixon avatar
Written by James Dixon
Updated over 2 years ago

"...but in this world, nothing can be said to be certain, except death and taxes."

- Benjamin Frankin

Depending on your location, Spectora is required to collect sales tax on transactions. Sales tax is a pass-through tax that is ultimately sent to the respective state. Spectora does not profit from these taxes.

How does Spectora calculate sales tax on my purchases?

We use your company profile address to determine your state of operation. Using your address and the product you are purchasing a third-party tax software will determine and apply the tax rate.

If you would like to use a different address to determine your tax rate you can add an address to the business tax address page. Settings > Billing > Business Tax Address

Why am I just seeing tax now?

Some states only collect taxes after certain criteria are met. This is called economic nexus.

For example, Nevada requires tax collection after an out-of-state business makes $100,000 in gross sales or has 200 or more separate transactions in a calendar year.

Do I owe sales tax on previous transactions?

No, taxes will only be applied to current and future transactions if due.

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