Sales & Use Tax FAQ

This article pertains to United States customers only.

Back on August 1, 2022 HighLevel Inc. started collecting sales tax on applicable subscription based product sales.  

Starting on January 1, 2023, HighLevel, Inc. will be collecting sales tax on applicable usage product sales billed in app via the wallet system.

Covered in this article:

Jan. 2024 Update on in-app wallet usage taxation

Question: Why is HighLevel charging me Sales & Use tax?

Question: Which states are required to collect Sales & Use tax?

Question: My company is tax exempt or self-remits sales tax what should I do?

Question: I have more questions who can I contact?

Question: Why we are applying for a tax exemption for intangible products?

Question: In what situation would someone have a sales tax exemption form?

Jan. 2024 Update on in-app wallet usage taxation:

• Customers with usage product sales < $10k per month.  Applicable sales tax will be billed on all usage sales for the month on the 1st of the following month.
• Customers with usage product sales > $10k per month:  Applicable sales tax will be billed on all usage sales for the 1st to the 15th of the month on the 16th of the month. And applicable sales tax will be billed on all usage sales for the 16th to the end of the month on the 1st of the following month.

HighLevel requests that its customers complete a new sales tax exemption certificate(s) in order to continue selling to your company on a sales tax-exempt basis. Complete the Multistate Tax Commission’s - Uniform Sales & Use Tax Exemption/Resale Certificate or another state-approved exemption certificate before January 29, 2024.

When completing the exemption certificate(s), please enter HighLevel, Inc as the Name of the Seller. Once you have submitted a valid exemption certificate you will not be required to do so again until the next expiration date. 

How can the customer see the details? - The customer will be able to see this information in their Wallet within the Agency. First they will need to log into their Agency, then go to Settings, then Billing, then Wallet & Transactions. Under Detailed Transactions, they will see the transaction:

They can click the chevron “>” to get more information:

Question: Why is HighLevel charging me Sales & Use tax?

Answer: HighLevel has recently completed a Nexus Study. As a result, some of our products and services are considered taxable. This is a result of the 2018 ruling in South Dakota v. Wayfair, a landmark Sales & Use tax nexus case which changed the rules on physical and economic nexus.

Question: Which states are required to collect Sales & Use tax?

Answer: Here is a quick reference guide https://www.salestaxinstitute.com/resources/rates. Sales & Use tax varies between states, please consult your local tax advisor for more info.  

Question: My company is tax exempt or self-remits sales tax what should I do?

Answer: HighLevel requests that its customers complete a new sales tax exemption certificate(s) in order to continue selling to your company on a sales tax-exempt basis. Complete the Multistate Tax Commission’s - Uniform Sales & Use Tax Exemption/Resale Certificate or another state-approved exemption certificate. 

When completing the exemption certificate(s), please enter HighLevel, Inc as the Name of the Seller. Once you have submitted a valid exemption certificate you will not be required to do so again until the next expiration date. 

If you have already completed this form or paid use tax, please be sure to send any supporting documentation to [email protected]

Question: I have more questions who can I contact?

Answer: If you have questions about the nature of the tax or its applicability please consult your company’s tax advisor or email your questions to [email protected].

Question: Why we are applying for a tax exemption for intangible products?

Answer: Sales tax no longer applies only to tangible products.  Some of the products HighLevel sells are required to be taxed.

Question: In what situation would someone have a sales tax exemption form?

Answer: HighLevel is required to collect sales taxes on some of our products unless you provide us with a resale certificate. If you are not sure if you are a reseller we recommend that you contact your CPA or tax advisor.