Understanding Sales Tax On Your Invoice

Why is there a tax item on my invoice?

ServiceMonster determines sales tax based on state-by-state tax laws. Most ServiceMonster customers will see a 0% tax rate on their subscription invoices.

If you see more than 0% sales tax on your invoice, it is because:

  1. Your billing address is in Washington State. ServiceMonster is incorporated in Washington and must abide by the state’s sales tax laws. 
  2. A sales tax nexus event has been triggered in your state. Sales tax nexus is a state-by-state tax law that defines the connection between a business and the local jurisdiction. If your state's regulations require ServiceMonster to collect sales tax, it will appear on your invoice. When sales tax is collected, it is paid back to your state as part of ServiceMonster’s annual taxes.

Why am I now seeing sales tax when I’ve been a ServiceMonster user for years? 

Check out the “ServiceMonster, Sales Tax, and You” blog post if you are interested in why ServiceMonster is collecting sales tax based on nexus determinations.