SimplePractice collects and remits sales tax where required by federal or state authorities. This guide explains why sales tax may appear on your SimplePractice receipt, how it’s calculated, and what to do if your tax status changes.
- Why is SimplePractice charging sales tax?
- How is sales tax calculated?
- Do the sales tax regulations apply to customers outside of the US?
- How do I know if I'm tax exempt?
- How can I update the tax exemption status associated with my SimplePractice account?
- What happens if I move to a different state or update my address?
- Where can I see what I'm being charged for sales tax?
- Can I charge sales tax on a client's invoice?
Why is SimplePractice charging sales tax?
In accordance with US sales tax regulations, SimplePractice is required to collect sales tax from customers in certain locations. Whether sales tax applies depends on your business location and tax status.
How is sales tax calculated?
Whether you’re charged sales tax is determined by the billing zip code associated with the credit card on your SimplePractice account and your tax exemption status.
Do the sales tax regulations apply to customers outside of the US?
The regulations that require SimplePractice to charge sales tax apply only within the United States.
How do I know if I'm tax exempt?
SimplePractice isn’t required to collect or remit sales tax in certain jurisdictions, and sales tax requirements vary by state and locality.
Your tax advisor or local regulatory body can advise whether your business qualifies for a sales tax exemption and help you obtain the appropriate documentation.
How can I update the tax exemption status associated with my SimplePractice account?
If you believe you should be considered tax exempt, reach out to our team and attach documentation verifying your sales tax exemption status.
Note: Income tax exemption documentation (for example, 501(c)(3) documentation) is different from sales tax exemption documentation and shouldn’t be submitted to SimplePractice.
What happens if I move to a different state or update my address?
If you move to a different state or update your address, check with your local regulatory body to confirm whether your sales tax exemption status still applies. If it does, reach out to our team and provide updated documentation.
Where can I see what I'm being charged for sales tax?
Sales tax is applied directly to your receipt for each SimplePractice product and service you subscribe to and/or use each month. This doesn’t apply to services you charge your clients.
To view your SimplePractice receipts, navigate to Settings > Practice > Plan info. Sales tax appears as a separate line item.
Can I charge sales tax on a client's invoice?
Many practices add sales tax to client invoices. Some states require or prohibit sales tax for certain products and services, so verify applicable laws in your area before charging sales tax to clients.
For steps on how to add sales tax in your account, see Can I add sales tax to an invoice?