If your business is based in the United States, you or your clients may be subject to state sales tax on ActiveCampaign purchases. The taxability of products and services provided by ActiveCampaign varies from state to state. If a state requires ActiveCampaign to be compliant with its state sales tax laws, ActiveCampaign must collect and remit sales tax to that state. Where applicable, tax will be calculated based on your billing address, if you are a Reseller Partner, and your client’s billing address, if you are an Agency Commission Partner.
Certain businesses and organizations may be tax-exempt, such as some nonprofits, religious institutions, educational organizations, research facilities, and others. Customers who provide a valid exemption certificate as proof of their tax-exempt status, or other state approved support, will not be subject to sales tax.
FAQs
How does this impact me as an Agency Commission Partner?
Agency Commission Partners (where ActiveCampaign bills your clients) will not need to do anything new in connection with this change. Please make yourself aware of these updates and communicate to your clients.
Example:
|
Retail AC Price |
State Sales Tax Rate (%) |
State Sales Tax ($) |
Client’s Payment Due |
|
$20.00 |
5.00% |
$1.00 |
$21.00 |
How does this impact me as a Reseller Partner?
If you are a Reseller Partner billing your clients directly, you will see sales tax now reflected on your clients’ invoices in the ActiveCampaign Partner Portal. ActiveCampaign is not in a position to offer advice regarding whether you can pass these costs down to your clients.
|
Wholesale Price to Partner |
State Sales Tax Rate (%) |
State Sales Tax ($) |
Reseller’s Payment to AC |
|
$20.00 |
5.00% |
$1.00 |
$21.00 |
|
Retail Price to Partner’s Client Pre-Sales Tax* |
State Sales Tax ($) |
Client’s Payment Due to Partner |
|
$26.67 |
$1.00 |
$27.67 |
*Assumes Reseller Partner is buying ActiveCampaign account at a 25% discount to rate card price.
How do I manage the sales tax if I’m based in a different state than my client?
ActiveCampaign recommends Reseller Partners reach out to a tax professional to determine their local tax requirements.
Why does ActiveCampaign apply sales tax to invoices?
ActiveCampaign services may be taxable in certain US locations. Per ActiveCampaign's Terms of Service, ActiveCampaign is authorized to charge accounts for applicable taxes (Section 6).
What if my client is using a trial account?
Tax will not be charged on trial accounts. Tax will be added when an account is converted to a paid subscription.
What should I do if I think I should be exempt from this tax?
Agency Commission Partners
If you believe your clients should be exempt or not subject to this tax, please contact billing@activecampaign.com and forward any support available for exemption (e.g. Tax Exemption Certificate, Small Business License). Documentation varies by state, so it’s important to reference your state laws before submitting your request.
Reseller Partners
If you believe you should be exempt or not subject to this tax, please contact billing@activecampaign.com and forward any support available for exemption (e.g. Tax Exemption Certificate, Small Business License). Documentation varies by state, so it’s important to reference your state laws before submitting your request. If you believe your clients should be exempt from this tax, we recommend reaching out to a tax professional to determine compliance with local tax requirements.
Note that documentation evidencing an exemption must be provided in a form acceptable to ActiveCampaign, and ActiveCampaign reserves the sole right to determine whether to approve or reject a proposed waiver of any tax related fees in its sole discretion.
How do I view and update my or my client’s billing address?
Visit your partner dashboard here and click on Billing Profiles on the right.