Sales Tax FAQ
Effective as of 12/1/2024, Ashby will begin collecting Sales Tax across all customers and jurisdictions in the U.S. where required.
This guide covers commonly asked questions but if your question isn’t covered here, please reach out to [email protected].
Why do I see the message “Access Denied” when trying to access Billing Settings?
If you see a message that your billing settings are managed outside of Ashby, please reach out to [email protected] to make changes.
If you see this message when trying to access your Billing Settings, it means you have not been assigned Billing access within Ashby. You can reach out to your internal Billing contact to update your billing information.
Why is there Sales Tax on my invoice?
Sales tax on Software as a Service (SaaS) varies based on the state or country’s tax laws. Many jurisdictions have changed their tax regulations to classify SaaS as a taxable service. To comply with these laws, we are required to charge sales tax where applicable.
Why are you charging sales tax now but weren’t before?
As our company has expanded, we now have nexus in additional jurisdictions. Consequently, sales tax will be applied to more invoices.
I don’t have to pay tax on other SaaS tools that I have. Why are you charging me but they aren’t?
Different companies may have different tax obligations based on their business locations and economic nexus. We are required to collect sales tax in certain jurisdictions due to our presence there.
My headquarters moved from X to Y. How does this affect my sales tax?
First, the difference in sales tax laws between jurisdictions X and Y could affect both the applicable tax rates and the taxability of SaaS services.
Second, your sales tax obligation could change based on if the invoicing company has a presence in location Y. If the company has no presence in Y then they would not collect sales tax on your behalf. However, you would be required to report and pay use tax on your own (if applicable).
What happens if I don’t pay the sales tax?
If you don’t pay sales tax we will require an exemption certificate to keep on file. Otherwise, we are legally required to collect and report sales tax on your behalf. Outstanding balances on your invoice may lead to disruptions in your service.
Am I responsible for sales tax on prior invoices?
We will not go back and apply or collect sales tax on prior invoices. However, you are likely obligated to pay use tax on those invoices to your local taxing authority.
What if I am exempt from sales tax?
If your business qualifies for tax exemption, please send a valid exemption certificate for your state or country to [email protected]. Upon verification, we will remove sales tax from your invoices.
What if my address is wrong?
- Navigate to Admin > Organization Setup
- Navigate to Billing
- Navigate to Settings
- Note: you must be a Billing User to access these settings. If you believe you should be added as a Billing User to manage your company’s billing settings, please reach out to your existing Billing User or to [email protected] to be added.
- Under Billing Information, review your company’s billing information and address. To add or update, click Edit in Stripe.
- You will be taken to a Stripe-hosted billing page. Click Update information.
- Update your billing address and information and click Save.