Applicable for US Customer Only.
As you are likely aware, the imposition of sales and use taxes by the various state and local taxing authorities has been evolving dramatically over the last few years. With the decline of tax revenues from brick-and-mortar commerce, municipalities are looking for new revenue sources often including software-as-a-service (SaaS) and professional services (Service). By the end of Q1 2022, Revinate will begin billing sales and use taxes to our valued clients, and remitting the receipts to the appropriate taxing authorities. We realize that this news is likely not welcome. Revinate is working diligently to roll out this program and receives no benefit from this initiative and, in fact, is incurring significant costs to fulfill the requirements. However, Revinate strives to be a leader in corporate citizenship and realizes that these monies will benefit the communities you, our clients, serve.
Each state, county, city, etc. may enact these taxes and levies differently, the permutations are too numerous to detail here. You may already be familiar with the applicable rates for your local jurisdictions. There are a few key points I would like to point out. First, taxes will generally be determined by the zip codes of the entities receiving benefits from services. In most cases, this means the zip codes of properties served. Second, different services may be subject to differing taxes. In some jurisdictions, taxes may be levied on SaaS and Service. Revinate services often involve a combination of these tax categories.
The taxability of each component varies by taxing jurisdiction. Revinate will be utilizing a third-party professional tax rating engine to ensure the taxes are calculated properly. Revinate is still in the process of building and testing this new taxing functionality. Although an estimate, it is our expectation that Revinate will begin invoicing these taxes by the end of Q1'2022.
If you have any questions, please do not hesitate to contact firstname.lastname@example.org.