Billing sales tax: Frequently asked questions (FAQ)

Last revised on November 30th, 2021

You may be required to pay state sales tax on your Gorgias subscription. We determine the applicable sales tax for your organization based on your billing address. You are required to enter your billing address in your Gorgias profile.

Frequently Asked Questions

Why is Gorgias starting to collect sales taxes now?

The 2018 U.S. Supreme Court decision in South Dakota vs. Wayfair changed a long-standing rule, and as a result, states can require businesses to collect sales tax on out-of-state sales. This means that while we may not have been required to collect sales tax in the past, this requirement has changed.

How does this impact me?

The billing address on the account as well as how you are billed determines whether your Gorgias account is subject to applicable taxes. If your billing address is not available on your Gorgias billing page, we will take into account the address attached to your credit card.

When does this go into effect?

If applicable, Gorgias will begin collecting sales tax starting with your January 2021 billing statement (for your December subscription period).

Think you're exempt from Sales Tax?

Some, but not all, charitable, religious, scientific, or educational organisations may be exempt from sales tax.
If you're a Gorgias customer and would like to apply for sales tax exemption, please contact our team at support@gorgias.com.
Exemption validation typically takes 5-7 business days. If your application is approved before the end of the month, you will not be charged sales tax for the month, or months thereafter, so long as Gorgias has valid proof of exemption as permitted by applicable law.

How is tax calculated?

Any applicable sales tax for your organization is determined based on the billing address of the Gorgias account and the applicable tax rate in that jurisdiction.

How will I be billed for taxes?

The billing process will not change. Applicable taxes will be included in the monthly billing statement in your Gorgias account.
To view your billing statement:
- Login to the Gorgias Portal
- Go to Settings → General → Billing & Usage
- Scroll down until you see your Payment History

I'm paying through Shopify, will I be charged by Gorgias?

No. Shopify is already collecting sales taxes in the applicable states. Gorgias won't charge you again as Shopify will take care of the tax collection of their own merchants.