Starting September 1, 2023, Ordoro will apply an 8.25% Texas sales tax to subscription fees, as required by state regulations.
This article addresses common questions regarding sales tax, specifically for Texas Nexus customers who must 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?
The sales tax nexus is a connection between a business and a state that requires the business to collect and remit sales tax. Nexus can result from:
- Physical presence in the state
- Economic activity within the state
- Reaching a sales revenue threshold
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 can request an exemption from paying sales tax on your subscription fees. To do this:
- Provide your tax-exempt documentation
- Contact our Support team for assistance
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.
Note: Misrepresentation of nexus status is a violation of tax regulations. Ensure your business accurately meets the requirements before requesting changes.