Overview
Starting 1/1/2025, some DoorLoop customers will notice sales tax applied to their subscription invoices. This change is in compliance with local and state tax laws in the United States. As a U.S. company, DoorLoop is required by law to collect sales tax in certain states, and the rate is automatically set based on the billing address on the invoice.
What Is Sales Tax, and Why Is It Now Applicable?
Sales tax is a government-imposed charge on the sale of goods and services. Recent changes in tax regulations require DoorLoop to collect sales tax in certain states. These laws often apply to software services like DoorLoop when they meet specific criteria for sales volume or number of customers within a state.
How Will This Impact Me?
If your billing address is in a state where sales tax applies to software subscriptions, your DoorLoop invoice will now include sales tax. This amount will be added to your regular subscription charge.
Do I Need to Do Anything Differently?
Yes. All customers need to update their billing address in their DoorLoop account. This ensures that the correct tax rate is applied based on your location. This can be done under Settings > Subscriptions. Once added, you will not need to do anything differently from there.
Note: If you don’t provide a billing address, DoorLoop may use the address associated with your payment method to determine the tax rate. No refunds will be issued for incorrect tax amounts due to missing or outdated billing information.
What Is the Sales Tax Amount That Will Be Added?
The sales tax rate varies by state and sometimes by local jurisdictions within the state. The rate could also vary depending on your specific location. Your invoice will clearly itemize the tax amount applied to your subscription.