Why is 1Password suddenly collecting sales tax?

jms1jms1
edited September 2 in Purchasing

I just received an email saying that 1Password is going to START collecting state and local sales taxes.

I live in Florida, my understanding is that only businesses who have some kind of presence in Florida are required to collect Florida state taxes.

Why the change? Was there some new law passed which wasn't very well publicized? Does 1Password suddenly have a presence in Florida that didn't exist before? Did 1Password just decide, out of the goodness of their hearts, to suddenly take on the task of collecting, reporting, and paying sales taxes for every city, county, state, and country on the planet?


1Password Version: Not Provided
Extension Version: Not Provided
OS Version: Not Provided
Sync Type: Not Provided

Comments

  • Another important issue is the fact that many jurisdictions (e.g., California) do not impose sales/use tax on Electronically Downloaded Software nor SaaS. Would the people at 1Password (which I love and recommend) clarify that they will only collect sales/use tax on transactions that are actually subject to sales/use tax? Thanks!

  • BenBen AWS Team

    Team Member

    Hi folks,

    As 1Password has continued to grow, we're now required to collect and pay sales tax for many customers in the United States. If we are not obligated to collect tax from you, we won't. :) Not all jurisdictions require sales/use tax to be collected for Software as a Service (SaaS). If your jurisdiction does not require a tax for SaaS then updating your ZIP code will help us make that determination.

    I wouldn't anticipate any problems but If you do find that you're being charged a rate you're not expecting or are being charged tax and didn't feel you should be please do reach out to our billing specialists at [email protected] and they can make any adjustments as necessary.

    Ben

  • Fair enough ... I guess I just feel like the email should have made that clear.

  • BenBen AWS Team

    Team Member

    Thanks for the feedback @jms1. I think there are a number of lessons we're learning from this particular email. :)

    Ben

  • Ben, how are you going to handle Sales Tax Exempt individuals? I am one of those. :-)

  • BenBen AWS Team

    Team Member

    Hi @s13

    That's interesting: I wasn't aware individuals could be exempt from sales tax. :) If you have a sales tax exemption please check out the instructions in this guide:

    About taxes for 1Password

    Ben

  • Hi Ben, here is what you got for me. I live in Alaska, USA. There is no state sales tax. Each city, borough can have their own sales tax. The rate where I live is either 5% or 6% depending on the time of year. If you meet the requirements, an individual can be exempt from sales tax. I meet the requirements and have a Sales Tax Exemption card. Are we having fun yet? Need more? Steve

  • BenBen AWS Team

    Team Member

    Steve,

    Thanks for the explanation! If you fill out the form at the link above we should be able to get you sorted out. :+1:

    Ben

  • OK, Ben I filled out the form. :-)

  • BenBen AWS Team

    Team Member

    Great; thank you. :)

    Ben

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