Sparkforge Sales and Use Tax FAQ for US Customers
Sparkforge collects US sales tax on applicable subscription and in-app wallet usage charges following its Nexus Study and the 2018 Wayfair ruling. Customers under $10K/month in usage are billed once monthly; over $10K/month are billed twice. Tax-exempt customers must submit an exemption certificate.
This article applies to United States customers only.
Sparkforge, Inc. began collecting sales tax on applicable subscription product sales on August 1, 2022. Starting January 1, 2023, sales tax is also collected on applicable in-app wallet usage charges.
January 2024 update on in-app wallet usage tax
Under $10K/month in usage
Sales tax is billed once a month. All applicable usage charges for the prior month are taxed on the 1st of the following month.
Over $10K/month in usage
Sales tax is billed twice a month. Usage from the 1st through the 15th is taxed on the 16th. Usage from the 16th through end of month is taxed on the 1st of the following month.
Submit an exemption certificate
If your business is sales-tax exempt or self-remits, complete the Multistate Tax Commission's Uniform Sales & Use Tax Exemption / Resale Certificate or another state-approved exemption certificate before January 29, 2024.
List Sparkforge, Inc. as the Name of the Seller. Once a valid certificate is on file, you don't need to resubmit until it expires.
Where customers see the tax
In your account, go to Settings → Billing → Wallet & Transactions. Under Detailed Transactions you'll see the tax line. Click the > chevron on a transaction for the breakdown.
Why Sparkforge charges sales tax
Sparkforge completed a Nexus Study and identified products and services that are taxable. This follows the 2018 South Dakota v. Wayfair Supreme Court ruling, which redefined physical and economic nexus and changed sales tax obligations for digital products.
Which states require collection
Sales and use tax obligations vary by state. The Sales Tax Institute's reference guide at salestaxinstitute.com/resources/rates tracks current rates. Consult your tax advisor for specifics.
Sales tax on intangible products
Sales tax no longer applies only to tangible goods. Some Sparkforge products fall under taxable digital and SaaS classifications under state law.
Frequently Asked Questions
Why is Sparkforge charging me sales and use tax?
My company is tax exempt. What do I do?
How often is in-app wallet usage tax billed?
Where can I see the tax on my transactions?
Who do I contact with sales tax questions?
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