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Why Sales Tax Exemption for Mental Health Therapy?

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4 comments

  • Leah Liszka

    Yes, I agree! I'm confused by this and not sure where to find tax exempt forms from my state for a tax that doesn't exist.

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  • Sarah Zimmerman

    Agree! They told me to submit a form that my NY state taxation dept states was not even correct.  I sent the screen shots.  They told me to send the form.  What do we do about this if they (Simple Practice) still take the sales tax?

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  • Hawanya B. Miller

    This may give more guidance:

    https://www.disputingtax.com/2020/03/diagnosing-sales-tax-rules-for-digital-health-products/?utm_source=Mondaq&utm_medium=syndication&utm_campaign=LinkedIn-integration

     

    It seems digital healthcare companies such as Simple Practice are subject this ruling re: sales tax collection

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  • Ayelette

    Hi everyone,

    I’m happy to share more insight on the sales tax.

    For applicable jurisdictions, sales tax is applied directly to your invoice for each applicable SimplePractice product and service you subscribe to and/or use each month. If you are charged sales tax, it would be based on subscription fees which can include the base subscription price, additional team members, insurance claim processing fees, Telehealth subscription fees, coverage reports fees, etc.

    To clarify, this does not apply to services you charge your clients.

    To learn more, I recommend checking out this resource we've prepared: Sales tax FAQs.

    If you have any specific questions about whether or how sales tax will be applied to your SimplePractice charges, please feel free to reach out to us directly through the blue question mark > Get Help option on the lower right of your SimplePractice account.

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