In the Supreme Court case South Dakota v Wayfair, it was determined that U.S. states may charge tax on online purchases made from out-of-state sellers, even if that seller has no physical presence in the state. This has significantly impacted eCommerce companies and SaaS providers like Bonsai. If you sell online to various U.S. states, this impacts your company too.
Because of this ruling, Bonsai will now be charging sales tax to customers in a variety of states. Here’s what you should know:
Is my state going to charge me sales tax?
As of the date when this article was published, 36 states and the District of Columbia have chosen to charge online sales tax. We anticipate that more states will soon begin to charge these taxes. To see up-to-date information on whether or not your state charges sales tax, please reference the Sales Tax Institute’s Nexus State Guide.
Does this apply to all Bonsai plans sold in these states?
Our Hobby Tier will remain free. Standard, Business, and Enterprise plans will all be subject to sales tax.
Plans sold through Heroku, or other third party channels will be taxed through those providers. Please follow up with your reseller for more information.
When does Bonsai plan to charge these taxes?
These taxes will be collected starting in January 2020.
Will these taxes be charged retroactively?
There is no indication that this will be necessary.
How do I opt-in to get charged for my state's sales tax?
Follow our step by step guide for Account Settings Billing.
If I have questions, who should I ask?
Log in and contact our Support Team.