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Sales Tax Billing going into effect for Washington, New York, and Massachusetts

Gabe EssnerGabe Essner Expensify Customer, Expensify Team Posts: 1 Expensify Team

We wanted to make sure that you know about an upcoming change that will be implemented in the near future regarding Sales Tax Billing. Effective for our June billing period, Expensify will be charging sales tax in the following states: Washington, New York, and Massachusetts. If you are in one of these states, your July 1st bill will be the first to see the sales tax charge.

For context, on June 21, 2018, the Supreme Court made a ruling in South Dakota V. Waifare, Inc.  that makes SaaS companies subject to sales tax based on 'economic and virtual' presences, instead of physical presence only. In the past, states could only tax sales by businesses with a physical location in the state. Now economic activity in a state — also known as economic nexus — can trigger a sales tax collection obligation. "Economic nexus" refers to criteria other than physical presence in evaluating a sellers connection to that state. 

We want to be as transparent as possible and let you know that if you are in one of these states this will impact your Expensify bill.

Please reach out to [email protected] for any questions or concerns!

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