Due to the U.S. Supreme Court ruling in South Dakota vs. Wayfair and changes in state law, Vagaro is now required to charge sales tax in select states.
Beginning July 1st, 2020, sales tax will be collected on applicable services and/or products sold in specific states. Businesses in these states will see this additional sales tax added to their July receipt. The rate at which these businesses will be charged varies by state and local ordinance.
Why this change has occurred: Effective November 1, 2018, the U.S. Supreme Court ruled in South Dakota vs. Wayfair that states can require companies to collect sales tax from their customers, even if the company does not own property or have an employee in the state.
View how this change has affected your state law
Who should I contact for additional information?
If you have questions about the law and how it affects your business, we advise you to contact your local tax authority for the specific tax laws and rates in your area.
Why is Vagaro collecting sales tax? I collect sales tax from my clients for products. Are my clients now being double taxed? Or is Vagaro now paying my state for my sales tax and I no longer need to do quarterly payments for sales tax to the state?? Please clarify how this works. Thank you
We are required to start charging Vagaro account owners sales tax on products and/or our software in specific states due to the ruling of the South Dakota vs. Wayfair case. You can learn more about this ruling by contacting your local state tax authority or referring to the link for your state in the article above. We are not charging your clients sales tax, and we are not paying the sales tax for your business quarterly. Vagaro is charging you sales tax for your monthly subscription price or if you purchase any products directly from us.
So the "products" is not products in the salon but "products or in other words-services (subscriptions, reader machines, etc) will be taxed.
Yes, that is correct. Vagaro will be charging tax on the monthly subscription and any point of sale equipment purchased directly from us in the states indicated above.
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