In June 2018, the Economic Nexus ruling in South Dakota v. Wayfair mandates state sales tax for cloud based software companies (SaaS) based on economic thresholds determined by each state. As such, Logikcull will periodically update the mandatory state taxes on invoices according to the requirements to collect sales tax in the states listed below based on our economic and/or physical nexus with those taxing jurisdictions. Please note that the starting date (to collect sales tax) may be different for each state.
- District of Columbia
- New York
- South Carolina
- West Virginia
For additional information, please visit the TaxJar website: https://blog.taxjar.com/saas-sales-tax/
How is sales tax calculated?
Sales taxes are calculated using the "Business address" listed on the Billing tab in-app.
If you have a tax exemption certificate, please email it to AR@logikcull.com
*Texas - Under Sec. 151.351, Logikcull services are classified as "information services and data processing services" whereby 20 percent of the value of information services and data processing services is exempt from the sales tax.
For example, a customer in Texas has received a Logikcull invoice for services in the amount of $100. If the applicable state sales tax rate is 8.25%, then the invoice total will read $106.60, not $108.25.
Subtotal Billed + (Subtotal Billed X (tax rate X 80%)) =>
$106.60 = $100 + ($100 X (8.25% X 80%))