Why was I charged sales tax on my Spoak membership?
Wondering why there’s suddenly a tax charge on your latest bill, or why there wasn’t one before? Here's everything you need to know about sales tax at Spoak. We get it 🥲 We hate taxes too but we like being in business more so we gotta charge and pay taxes.
Why are we charging sales tax?
Here’s the scoop: As Spoak grows, we’re hitting something called “nexus” in different states. Don’t worry, it’s not as mysterious as it sounds! It means we’ve reached a point where state laws require us to collect sales tax from users in certain locations. Basically, some state tax folks realized how much fun we were having and decided they wanted in on it too. So, if you’ve noticed a new tax charge on your bill, that’s why!
What determines if you're charged sales tax?
- Your billing location. The sales tax amount (if any) is based on where your billing address is located. This is why we ask for your billing address and zip code when you sign up for Spoak. Our state tax obligations can change from time to time. So, if you haven’t been charged tax in the past, that might change in the future (or vice versa). You can update your billing address in your account billing dashboard at any time by selecting 'update billing info'.
- Your plan matters too. Some states charge sales tax differently based on whether you’re on a business or consumer plan. If you’re on a business tier (Pro, Premium, Power, or Enterprise), the tax rates might differ from those on a consumer plan (Play, Plus).
Where can I see the tax charges?
Your billing receipt emails and account billing dashboard will always reflect any tax applied to your charges, so no surprises here! Just check your invoice (guide here), and you’ll see a line item for any taxes charged.
Why wasn't I charged tax before?
Our state tax obligations can change over time. It’s possible that we weren’t required to collect tax in your state before, but now we are—or the other way around. Think of it like those quirky interior design trends—sometimes they’re in, sometimes they’re out, but we’re always keeping you in the loop!
What if I have more questions?
We get it. Taxes can be confusing. If you have more questions, feel free to reach out to our support team. We’re here to help!