What is this charge for?
With the launch of Mercury Invoicing on August 20, 2024, we are now considered to be a Software as a Service (SaaS) company. In certain states, SaaS products and services have sales tax obligations.
What is a SaaS company?
Software as a Service (SaaS) is traditionally considered a cloud-based software model that delivers applications to end-users through an internet browser. SaaS vendors host services and applications for customers to access on-demand. There are a handful of states that have sales tax obligations for SaaS products and services by state.
Why didn’t you charge me this before?
Prior to the launch of our new invoicing product on August 20, 2024, we were not considered as a Software as a Service provider.
Why wasn’t I notified of this change?
The T&Cs in the subscription agreement discusses that applicable taxes apply.
I am not based in the US. Why do I have to pay sales tax?
If you are not based in the U.S., you are not subject to U.S. sales tax rules.
I am tax-exempt. How can I update my tax status?
If you believe you are tax-exempt, please contact our customer service team at help@mercury.com to submit your tax exemption certificate. If you are unsure of your tax status, please contact your tax advisor with any questions about a tax exemption.
I am tax-exempt. Why did you charge me for this? How can I get a refund?
If you believe you are tax-exempt, please contact our customer service team at help@mercury.com to submit your tax exemption certificate. We will issue a refund to you once we validate your tax exemption status.
Do I need to submit anything to the IRS?
No, this pertains to state and local jurisdictions. Mercury will collect your sales tax and submit it to the state and local taxing authorities as applicable.
Does Mercury do tax reporting? How does this affect my business?
Yes, once Mercury collects the sales tax from our customer, we will file the sales tax returns with the appropriate state and local taxing authorities.
How do I change the state I am taxed in?
The default billing address we use to determine the sales tax rate is based on your legal address under your customer profile. If that information is incorrect, please update your address.