Like many B2B SaaS businesses, Parspec's pricing is exclusive of any sales tax obligations and sales tax responsibility falls on the buyer of the SaaS product.
Why am I being charged for sales tax?
For customers located in the United States, Parspec, Inc. is required to levy and collect taxes on sales in specific jurisdictions that mandate the taxation of our products. This obligation arises when Parspec, Inc. maintains either a physical presence or fulfills certain economic thresholds within that jurisdiction. These taxes encompass sales taxes and excise or privilege taxes.
For customers in the United States where Parspec, Inc.'s products are taxable but the company lacks a physical presence or has not yet reached the economic thresholds, no sales tax will be applied. However, this circumstance may change in the future due to legal amendments or if Parspec, Inc. satisfies any requirements for tax collection in that jurisdiction.
Please reference our Terms of Service for additional information.
What happens with the sales tax collected?
All sales tax collected from customers is entirely remitted to the relevant jurisdiction, with no portion retained by Parspec, Inc.
How is sales tax calculated?
On your invoice, sales tax is calculated based on Parspec, Inc.’s determination of the taxability of the product(s) you purchased, the address information provided by you and the tax rate of the applicable jurisdiction where you are located. If you need to update your address information please contact [support@parspec.io].
Sales tax for non-US based customers
To adhere to foreign sales tax regulations, Parspec, Inc. is obligated to gather a Value Added Tax number (VAT) from each customer at the point of sale. This requirement applies to all foreign customers, irrespective of their jurisdiction's prevailing sales tax laws. VAT numbers are collected either by the Parspec sales team or Parspec’s accounts receivable department.
What if my business is exempt from sales tax?
Certain businesses such as non-profit organizations, educational institutions and other organizations may have tax exemptions in various jurisdictions. If your business has an exemption certificate please contact [support@parspec.io] and provide a copy of the exemption certificate to Parspec, Inc..