Beginning September 1, 2023, Ordoro will implement an 8.25% Texas sales tax on subscription fees in accordance with state regulations.
This article addresses common questions regarding sales tax, specifically for Texas Nexus customers who are required to pay sales tax on their subscription fees.
Topics
- What is Sales Tax Nexus?
- Do I Need to Pay Sales Tax on Ordoro Subscription Fees?
- How is Sales Tax Calculated?
- Exemption for Tax-Exempt Organizations
- How Do I Update My Sales Tax Settings in Ordoro?
What is Sales Tax Nexus?
Sales tax nexus refers to the connection between a business and a state that requires the company to collect and remit sales tax on sales made within that state. Nexus can be established through various factors, including physical presence, economic activity, or even a certain amount of sales revenue generated within the state. See this article for more details.
Do I Need to Pay Sales Tax on Ordoro Subscription Fees?
If you have a nexus in Texas, you are required to pay sales tax on your Ordoro subscription fees. This means that the state of Texas considers you to have a sufficient connection (nexus) to require you to collect and remit sales tax.
How is Sales Tax Calculated?
Sales tax is calculated based on the total amount of your Ordoro subscription fees. The tax rate is determined by the state of Texas and any local jurisdictions that may apply.
Exemption for Tax-Exempt Organizations
If your organization is tax-exempt, you may be eligible for an exemption from paying sales tax on your Ordoro subscription fees. To claim an exemption, you’ll need to provide the necessary documentation and information to Ordoro. Reach out to our Support team for guidance on the exemption process.
How Do I Update My Sales Tax Settings in Ordoro?
If you believe you do not have a Texas nexus, kindly contact our Support team, and we will review your situation and adjust the billing if necessary.
However, it’s important to note that if you request a change and are found to have a Texas nexus, making such a change would be considered a violation of tax regulations.