Overview
As of May 1, 2025, Dots will begin collecting California sales tax on all taxable transactions for clients registered in California. This change is in accordance with the California Department of Tax and Fee Administration (CDTFA) requirements, following our company’s recent growth and expanded activity in the state.
Why This Change Is Happening
California law requires companies that exceed a certain volume of sales in the state (known as the economic nexus threshold) to collect and remit sales tax. Our company has now crossed that threshold, and we are therefore obligated to collect sales tax on qualifying sales to California-based customers.
What You Can Expect
Starting May 1:
Sales tax will appear as a separate line item on all invoices for your California-registered account.
The applicable tax rate will be based on your shipping or billing address, in line with California’s jurisdictional rates.
You do not need to take any action — the tax will be calculated and included automatically.
The Benefits to You
✅ Simplified Tax Compliance: You no longer need to self-assess or remit use tax for purchases made from us.
✅ Reduced Audit Risk: With us collecting and remitting the sales tax, your tax filings are clearer and less likely to raise compliance issues during audits.
✅ Transparent Billing: Sales tax will be shown clearly on each invoice for full visibility.
Frequently Asked Questions
Q: What if I’m tax-exempt?
If you are a tax-exempt entity, please send us a valid California resale or exemption certificate. Once verified, we will ensure no sales tax is applied to your future invoices.
Q: Will this impact past invoices?
No, sales tax will only be applied to transactions dated May 1, 2025 and onward.
Q: What tax rate will apply?
The rate will depend on your California location. We will use the correct rate based on the ship-to or bill-to address on file.
Questions?
We understand that tax changes can raise questions, and we’re here to help. Please feel free to reach out to your account manager or contact our billing department at support@dotstech.com.
We appreciate your continued partnership and your understanding as we take steps to stay compliant with evolving state tax regulations.
Sincerely,
Dots Finance & Compliance Team