Sales Tax And Tax Exemption
Depending on your location and any applicable tax laws, Rev may charge sales tax in addition to the purchase price. The amount of tax varies by location and by the services you purchase. The final price of your order, including any fees or taxes, is displayed at checkout. This article answers common questions about sales tax and tax exemption.
In this article
- Why does Rev charge sales tax?
- When did Rev start collecting sales tax?
- Where does Rev charge sales tax?
- What orders are subject to sales tax?
- How does sales tax work with a prepaid balance?
- Which customers are tax-exempt?
- How do I submit my tax exemption certificate?
- Why does Rev collect addresses?
Why does Rev charge sales tax?
The Supreme Court of the United States ruled in favor of the state in South Dakota v. Wayfair, Inc. (2018). The decision overruled a longstanding physical presence rule, allowing states to require remote sellers to collect and remit sales tax. Nexus laws in certain states were expanded to include a sales tax obligation based on a certain level of economic activity within the state, including sales revenue, transaction volume, or a combination of both.
When did Rev start collecting sales tax?
Rev began collecting sales tax in August 2021 and adds states over time in accordance with local requirements.
Where does Rev charge sales tax?
Rev currently applies sales tax only in certain locations, and the list changes over time. The final price at checkout shows whether tax applies to your order. If you aren’t sure whether your location is charged, email taxexemption@rev.com. We’ll share the most up-to-date information available.
What orders are subject to sales tax?
Sales tax can apply to orders placed on Rev.com, including desktop and mobile web checkouts, invoiced orders, prepaid orders, subscription services, and API orders. Whether tax applies depends on the address on your order and the service you purchase.
How does sales tax work with a prepaid balance?
When you place an order that is subject to sales tax, the full order value, including sales tax, is deducted from your prepaid balance.
If your prepaid balance doesn’t cover the order total including tax, add funds before you place the order.
Which customers are tax-exempt?
Customers who are exempt from paying sales tax in their state can request a tax exemption by providing their state's exemption certificate. Exemption certificates vary by state and by how the purchase will be used, and Rev doesn't have its own exemption form. An exemption applies only to the state named on your certificate. Orders with an address in another state can still be charged sales tax.
How do I submit my tax exemption certificate?
You can submit your certificate in either of two ways. First, get a copy of your sales tax exemption certificate for the relevant state.
To upload it in your Rev account:
- Select Hi [Your name] in the upper right.
- Select Account Settings.
- Select Sales Tax Exemptions.
- Upload your certificate.
If you don’t see Sales Tax Exemptions in Account Settings, send your certificate by email instead. To send it by email, send a PDF copy to taxexemption@rev.com. Include the email address or account number for your Rev account.
Please allow time for processing and approval before placing orders. Exemptions must be provided and approved before any orders are placed. We are legally obligated to charge sales tax when there is no exemption in our documents. Because of this, we are unable to refund sales tax on any orders that were charged before an exemption is on file.
If you've been approved for an exemption and are still charged sales tax, contact support@rev.com with your order number so we can review your account.
Why does Rev collect addresses?
Rev uses the address you provide to determine whether sales tax applies to your order. Enter your address at checkout so Rev can calculate the tax.