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Intuit
5 helpful votes

Sales tax exempt status update and sales tax refund

Overview

Intuit will process requests for account update to Sales Tax Exempt status or sales tax refund as soon as we receive the required documentation.

Details

If you are requesting a refund or would like Intuit to update your account as Sales Tax Exempt, fax a copy of your Tax-Exempt documentation to:

Fax: 866.831.5760Attn: Order Control

For refund request, include a note along with your documentation and provide the following:

  • Include this note: For sales tax refund request
  • Your Account Information:CAN - Customer Account NumberEIN - Federal Tax ID
  • Order number if available
  • Product/Service that you purchased

Note:

  • Once your account is updated to Sales Tax Exempt, you will no longer see sales tax charges on future orders or service fees. Account update may take 5 to 10 business days.
  • Refund requests for Sales Tax Exemption on product or service you purchased from Intuit can only be processed after we receive and validate a copy of your Tax-Exempt Certificate.
  • Refund requests may take some time, depending on your mode of payment and how soon your financial institution is able to post the transaction.

Sales Tax FAQ:

Why are you charging me sales tax?

Essentially, QuickBooks payroll services are "canned softwares." A sale of canned software is considered to be a sale of tangible property, and is subject to sales tax.

"Prewritten software or prewritten computer software" is defined to be a tangible personal property whether or not the customer receives a tangible copy of the software, downloads the software, or uses an online ASP (Application Service Provider) or SaaS (Software as a Service) version of the prewritten software (for example, Intuit Online Payroll).

For specific rules, check with your state tax agency.

How much sales tax will be added to my order?

The sales tax charged for an individual transaction is based on the shipping address, which is defined as the location where the product is ultimately received by the Intuit customer. The applicable sales tax charged is based on the zip code within the specific state where the product has been received.

The amount charged will include all state, county, and local taxes as required by law. In most cases, these taxes will apply to the shipping and handling fee as well as the product price. Although some states do not require sales tax on a separately stated, reasonable shipping charge, this charge is generally regarded as taxable when it is combined with a handling fee. Because Intuit charges a shipping and handling fee, applicable sales tax* is collected on this fee, in addition to the tangible product.

Because tax requirements vary between states, Intuit must calculate sales tax at the time of shipment. Please check your confirmation e-mail or your credit card statement to verify the final charge for your order.

* Excluding Idaho, Massachusetts, New Jersey, and Oklahoma, as these 4 states do not currently require sales tax on the shipping and handling fee.

I purchased your payroll service online. Why are still charging me sales tax?

Although Intuit generates a large portion of multi-state sales through the Internet, Intuit does business in each state, and the taxing authorities of the individual states have previously determined that Intuit has a legal presence (commonly referred to as a "Nexus") in their respective states. Therefore, Intuit is required to collect and remit the applicable sales tax for all taxable transactions in their state.

Factors that determine a Nexus include (but are not limited to) the following:

  • Employees conduct business within the state on a part-time (or greater) basis
  • Offices located within the state
  • Equipment located within the state
  • Direct mail and other advertising is distributed to in-state residents via the U.S. USPS

Congress passed a moratorium on taxable transactions that are generated exclusively through the Internet. However, any company that already has a Nexus in a state (such as Intuit) is still required to conform to existing state laws regarding collecting and remitting sales tax on taxable transactions that occur in that state.

Sales tax collection when the shipping address is in a non-taxable state.

Intuit does not collect sales tax on products shipped to Alaska, Delaware, Montana, New Hampshire, and Oregon, as these 5 states do not currently impose a sales tax.

As a general rule, shipment of goods to any of the 5 states listed above will not result in a sales tax billing. If your order was delivered to an alternate shipping address, this address, and not the billing address, will determine whether or not sales tax should apply as well as the applicable sales tax rate.

I am running payroll for a nonprofit organization.

If you are running payroll for a nonprofit organization or are exempt from sales tax, do the following:

  1. Send a copy of your sales tax exempt certificate to:
    • Fax: 866.910.5671Attn: Order Control
  2. If an order was already processed, and you were already charged sales tax, write a note in the document you are sending: "For sales tax refund request of order number 2000XXXXXX." (You may find the order number in your invoice. You may get a copy of your invoice at www.orderstatus.intuit.com or contact us.)
  3. Wait for 5-10 business days for us to process your request. Once your request is processed, you will no longer see the sales tax charges on future orders.Note: The refund will be sent back to where it was charged. Depending on your mode of payment, the actual refund may take some time, depending on how soon your financial institution is able to post it.

Is this the same as income tax?

State sales tax is not to be confused with state income tax. The following states do not collect income tax, but still require Intuit to collect and remit sales tax:

  • Nevada
  • South Dakota
  • Texas
  • Washington
  • Wyoming

Florida also requires Intuit to collect and remit sales tax but does not always require its residents to file income tax.

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