On May 3, 2021, SimplePractice began collecting and remitting sales tax from customers when required to do so by relevant tax authorities, based on the applicable tax rate where your billing zip code is located. This means that at this time, SimplePractice may not be required to collect and remit sales tax from certain customers based on state and local sales tax laws, which are subject to change. Sales tax is applied directly to your invoice for each applicable SimplePractice product and service you subscribe to and/or use each month. This does not apply to services you charge your clients. Below, you'll find answers to the following questions:
- 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?
Why is SimplePractice charging sales tax?
In accordance with US sales tax regulations, SimplePractice is now required to collect sales tax from our customers in certain locations. Whether these taxes are due depends on your tax status and location.
How is sales tax calculated?
Whether you're charged sales tax is determined by the zip code on the credit card associated with 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 are only applicable in the United States at the time.
How do I know if I'm tax exempt?
At this time, SimplePractice does not have an obligation to collect and remit sales tax on transactions in certain jurisdictions.
Your tax advisor or local regulatory body can advise on whether your business meets the criteria for sales tax exemption, and can help you obtain the documentation necessary to validate your sales tax exemption status.
How can I update the tax exemption status associated with my SimplePractice account?
If you believe that you should be considered tax exempt, you can fill out the Sales Tax Exemption form and attach the documentation you received that verifies your exemption status.
Note: Income tax exemption documentation (e.g., 501(c)3 documentation) is different from sales tax exemption documentation and should not be provided 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, we recommend checking with your local regulatory body to determine if you still qualify for tax exemption status. If you do, you can fill out the Sales Tax Exemption form and attach the documentation you received that verifies your exemption status.
Where can I see what I'm being charged for sales tax?
Sales tax is applied directly to your invoice for each SimplePractice product and service you subscribe to and/or use each month. This does not apply to services you charge your clients. To view your invoices, navigate to Settings > Subscription Information. The sales tax will be listed as a separate line item on the invoice.
