A Bill.com account may be subject to state and local sales taxes. We determine the applicable sales tax for your organization based on your billing address.
Jump to:
- What Bill.com products and services may be subject to taxes
- Why is Bill.com starting to collect sales taxes now?
- When does this go into effect?
- Do I qualify for a tax exemption?
- How does this impact me?
- How do I know if my Bill.com account will incur state and local taxes?
- How is tax calculated?
- How will I be billed for taxes?
- How do I find and validate my billing address?
- As an accounting firm, how do I know how my clients are billed?
- As an accounting firm, how do I manage how my clients are billed?
- Does Bill.com keep the taxes?
What Bill.com products and services may be subject to taxes
- Subscription fees
- Transaction fees
- Service fees (Check Void fee, Pay Faster fee, etc.)
- Support fees
- Fees for future products and services
Important: Contact your tax advisor with any questions about a tax exemption.
Why is Bill.com starting to collect sales taxes now?
The 2018 U.S. Supreme Court decision in South Dakota v. Wayfair changed a long-standing rule, and as a result, states can require businesses to collect sales tax on out-of-state sales. This means that while we may not have been required to collect sales tax in the past, this requirement has changed.
When does this go into effect?
If applicable, Bill.com will begin collecting sales tax starting with your June 2020 billing statement (for your May subscription period).
Do I qualify for a tax exemption?
Subject to state and local tax regulations, certain organizations may be exempt from sales tax. Please contact your tax advisor with any questions about a tax exemption.
If you believe your organization qualifies for sales tax exemption, please submit your request for exemption through the Sales Tax Exemption Request form for us to review.
How does this impact me?
The billing address on the account as well as how you are billed determines whether your Bill.com account is subject to applicable taxes.
If you are billed directly by Bill.com, your billing address is used to determine if you are subject to state and local taxes. If you are billed through an accounting firm, the billing address of the accounting firm is used. Contact your accounting firm to determine if sales tax applies to you based on the firm’s billing address.
How do I know if my Bill.com account will incur state and local taxes?
Applicable taxes will be included in the monthly billing statement in your Bill.com account.
As of May 1, 2020, the following 19 states/jurisdictions are requiring us to collect sales tax:
| Arizona (AZ) | Ohio (OH) |
| Colorado (CO) | Pennsylvania (PA) |
| Connecticut (CT) | Rhode Island (RI) |
| Washington, DC (DC) | South Carolina (SC) |
| Hawaii (HI) | South Dakota (SD) |
| Iowa (IA) | Tennessee (TN) |
| Illinois (IL) | Texas (TX) |
| Massachusetts (MA) | Utah (UT) |
| New Mexico (NM) | West Virginia (WV) |
| New York (NY) |
For more information, please contact your tax advisor or the appropriate tax authority in your jurisdiction.
How is tax calculated?
Any applicable sales tax for your organization is determined based on the billing address listed in the Company Profile of the Bill.com account and the applicable tax rate in that jurisdiction.
How will I be billed for taxes?
The billing process will not change. Applicable taxes will be included in the monthly billing statement in your Bill.com account. To view your billing statement:
- Login to your BIll.com account
- Click Settings
- Click Statements, under Your Account with Us
How do I find and validate my billing address?
The billing address is displayed on the Company Profile page of the Bill.com account. To view your Company Profile:
- Login to your Bill.com account
- Click Settings
- Click Profile under Your Company
- View the address listed as Company Location
If an alternative location is provided as the Mailing Address, it will not determine or impact eligibility for taxes.
As an accounting firm, how do I know how my clients are billed?
The billing setting for all clients is displayed in the client list when you login to the Accountant Console. To review offline, run the Console Billing report:
- Login to your Bill.com Accountant Console
- Click Manage Console
- Under Reports, click Console Billing
- Enter a Billing Year and select a Billing Month
- Click the box to Show Directly Billing Clients
- Click View or Download
The Bill To setting is displayed in the far right column of the report.
As an accounting firm, how do I manage how my clients are billed?
Clients linked to an Accountant Console may be billed for Bill.com products and services directly by Bill.com or billed by your firm through the Accountant Console. You can manage this setting in the console account:
- Login to your Bill.com Accountant Console
- Click Manage Console
- Locate the client in the Company Name list
- View the client’s current billing setting in the Bill To column
To update the billing setting for a client:
- Locate the client in the Company Name list
- Click Change in the Bill To column
- Click Confirm (or Cancel to dismiss)
Does Bill.com keep the taxes?
No, these taxes are collected and remitted to the appropriate tax authorities by Bill.com, as required.