U.S. Sales Tax Overview
Last Updated: October 14, 2024
In the U.S., Harness calculates sales tax based on different factors, including the tax rates specific to your state, the types of services you buy, and your status as a business or nonprofit. The sales tax calculation considers your business address, tax registrations, product tax codes, as well as the locations and statuses of your customers listed in your Harness account.
Sales tax may apply to all services, but the amount can vary depending on your state's rules regarding software as a service (SaaS) and professional services.
To avoid unexpected charges, make sure your billing address and payment method are accurate as shown on your invoice.
How to File for U.S. Sales Tax Exemption
Harness must keep records of any tax-exempt sales as required by law. If you or your organization qualify for a sales tax exemption, please email finance@goharness.com from an email address linked to your Harness account and include one of the following forms of tax-exempt documentation:
- Resale certificate
- Multi-state tax exemption certificate
- State sales tax exemption certificate
- Partial sales tax exemption certificate
Once your exemption is confirmed, we will update your Harness account to reflect tax-exempt status. During the validity of your exemption, Harness invoices will not include sales tax.
If you have additional questions about taxes or notice any errors in your tax charges, please reach out to our finance team at finance@goharness.com with any supporting documents, and we will look into the issue.
Sales Tax FAQ
1. What is sales tax, and why am I being charged?
Sales tax is a tax imposed by the government on the sale of goods and services. Harness must collect sales tax based on your billing address in states where we are obligated to do so. The collected tax is then sent to your state.
2. How does Harness determine whether to charge sales tax?
We determine sales tax by looking at your billing address, your state’s tax rules for SaaS or professional services, and your business's tax registration status. If your business qualifies for tax-exempt status, we will not apply sales tax once we have your valid exemption documentation.
3. I think I was incorrectly charged sales tax. What should I do?
If you think you were charged sales tax incorrectly, please contact our finance team at finance@goharness.com with supporting documents, and we will review the charges.
4. How can I update my billing address to ensure accurate tax calculations?
You can update your billing address by logging into your Harness account and going to the “Billing” section. Ensure your billing address accurately reflects your current business location for correct sales tax calculations.
5. What forms of tax-exempt documentation does Harness accept?
We accept:
- Resale certificate
- Multi-state tax exemption certificate
- State sales tax exemption certificate
- Partial sales tax exemption certificate
6. Do I need to resubmit my tax-exemption documents annually?
Depending on your state’s requirements, you may need to renew your exemption documentation at certain intervals. We recommend checking the expiration of your tax-exempt certificate and submitting updated documents if needed.
7. How do I know if my state requires sales tax on SaaS products?
Sales tax treatment for SaaS products varies by state. Some states consider SaaS taxable, while others do not. For more specific information, consult your tax advisor or visit your state’s department of revenue website.