Ever wonder how Sales Tax works on RepeatMD?
Here you will find some information along with some FAQs that practices might ask in regards to how tax is collected and submitted to the IRS when using our platform.
Marketplace Facilitator Law
RepeatMD is a Marketplace Facilitator. For sellers, marketplace facilitator laws mean that your facilitator will handle collecting and remitting sales taxes on your company’s behalf in states where your services are subject to tax.
FAQs:
Are you collecting sales tax on our services at this time?
No, but we are still paying for them on your behalf to your state’s department of revenue as the Marketplace Facilitator.
Is there a sales tax report for my practice that you can provide me to show the sales tax remitted?
Not at this time. We calculate sales tax for all of our clients in the designated state and remit it as one lump sum, not by an individual location.
When you do start collecting sales tax again, does your collection of sales tax affect my payout?
Because we pay for the sales tax to your state’s department of revenue on your behalf, your payout will not include the sales tax.
If RepeatMD is paying the sales tax on our behalf, how do I communicate that with my accountant?
RepeatMD serves as a Marketplace Facilitator. For sellers, marketplace facilitator laws mean that your facilitator will handle collecting and remitting sales taxes on your company’s behalf in states where your services are subject to tax.
Is my practice required to pay taxes on any services?
All transactions are subject to applicable sales tax depending on the state your practice is located in.
What services are subject to sales tax and which states are they applicable to?
The states that are subject to sales tax on non-medical aesthetic services provided by license professions are CT, HI, IA, KY, NM, NYC, OH, and SD.
If you’re not applying sales tax on our services, what does that mean?
It simply means that as the marketplace facilitator, we are paying out the applicable sales tax to the compliant state’s department of revenue on your behalf.
Sales tax application is subject to changes of the tax law changes of your local state authorities.
Can I see a report of the sales tax that is being collected from my purchases?
We are currently adding this feature into the Transactions report on your Admin Panel. You will be able to see the amount of sales tax collected and can export the report for your Accountant.
Even though we are not collecting any sales tax at this time, we are paying the sales tax on your behalf to your individual state’s department of revenue as the marketplace facilitator.