Is Sales Tax included in my Thinkific subscription charges? – Thinkific

Question

What is the sales tax change to my Thinkific subscription?
How much sales tax will I be charged?
How can I change my account's zip code?

Canada

As of December 8th 2021, Thinkific will charge incremental sales tax to all non tax-exempt creators in Canada. Tax rates can vary by country, state, territory and city, and are based on the applicable rate at the time of your billing. These amounts can change over time with local tax requirements. This is based on the postal code we have on file for you, so it is very important that we have your correct billing address!

Tax is added on top of our advertised fees, which is why you might see a slightly different price on your invoice or within your account details.

United States

As of December 8th 2021, Thinkific will charge incremental sales tax to creators in US states in which we meet requirements under the local tax authority.

Depending on where you are located in the US, you may be charged sales tax beginning with your next monthly payment after December 8th 2021. Tax rates can vary by country, state, territory and city, and are based on the applicable rate at the time of your billing. These amounts can change over time with local tax requirements. This is based on the zip code we have on file for you, so it is very important that we have your correct billing address!

Tax is added on top of our advertised fees, which is why you might see a slightly different price on your invoice or within your account details.

How to Update Your Zip/Postal Code

From your Admin Dashboard, select Account Details under our account
Under Billing details beside the tax amount, click (edit)
Enter your zip or postal code
If appropriate, check off My organization is tax exempt/not located in the USA/Canada
Click Update My Info

Note that in the case of tax-exempt status, you are indicating that you have the necessary documentation to prove this status, and that you will be able to produce that documentation in case of an audit or other official request.

Frequently Asked Questions

Where can I see if tax applies to my region?

You can see the tax amount for your current postal/zip code within your account details. You will also see the tax amount included on your invoice for any billing periods after December 8th, 2021.

Does this affect the fees my students pay?

No. Sales tax is only applied to the fees for your Thinkific subscription plan.

What if my business is tax exempt/located outside of Canada/USA?

If your business is tax-exempt, or does not operate from the United States or Canada, you can indicate this when editing your zip code from the Account Details screen. While you will still see a line for Sales Tax on this screen (and on your invoice), the amount will be set to zero.

If you do select that your business is tax-exempt, you will need to send a copy of your exemption certificate to taxes@thinkific.com so that we can validate your exemption status.

When will Thinkific add tax to invoices in my location?

Thinkific will notify you of the change via your current billing email and will prompt you to verify your current billing address 30 days before taxes are added to your invoice.