Why am I being charged sales tax?
Texas classifies cloud-based software (SaaS) as a taxable data processing service. Because of this, Jetbuilt is required to collect Texas sales tax on subscriptions for accounts located in Texas.
When does it apply?
Sales tax is added to your subscription if your account has either of these:
A Texas billing address
An office with a Texas address
How much is it?
Texas only taxes 80% of the subscription charge. The other 20% is exempt by state law.
The rate is the Texas state rate (6.25%) plus any local rate for your address, totaling up to a combined rate of 8.25%.
My organization is tax-exempt. What do I do?
Download and complete Texas Form 01-339 (Sales and Use Tax Exemption Certification): comptroller.texas.gov/forms/01-339.pdf
Reach out to support chat for the email to which you can send the form.
Send it in.
Once we’ve reviewed it, we’ll update your account.
Good to know:
Texas doesn’t issue sales tax “exemption numbers.” The completed form itself is what we need.
Send the form to Jetbuilt, not to the Texas Comptroller.
Where can I learn more?
Texas Comptroller: Taxable Services, the state’s explanation of why software services are taxed
Texas Comptroller Tax Help, for questions about your own company’s tax situation