MyWikis collects sales tax/VAT from certain customers as needed in order to comply with regulations worldwide.
Sales tax/VAT collection is determined by where your mailing address is based.
If your address is based in these following places, then we DO collect taxes:
- Texas, United States - Texas Sales & Use Tax (6.6% - see why below)
If your address is based in these following places, then we do NOT collect taxes:
- A state in the United States other than Texas
- European Union member country
- United Kingdom
- Any other country not mentioned above
More information about each case will be explained below.
Texas Sales & Use Tax
MyWikis is operated by MyWikis LLC, a limited liability corporation incorporated in the state of Texas in the United States of America. As a result, state law requires us to collect Texas sales tax for entities based within the state.
Sales tax is for products. MyWikis offers a service. Why are you charging sales tax on a service? Why is the rate 6.6%, isn't that non-standard?
Texas law classifies web hosting as a "data processing service". As a web hosting service, MyWikis is therefore required to charge sales tax on 80% of the purchase price, as Texas regulations state that 20% of the cost of a data processing service is exempt from sales tax. Since MyWikis LLC is incorporated in an area where sales tax is 8.25%, that makes our effective sales tax rate 6.6%.
I don't live in Texas/My business is not based in Texas. Do I need to pay Texas sales tax?
No, you are not liable for Texas sales tax. Please truthfully provide your address and our systems will automatically calculate your sales tax rate (which should be 0%). Rest assured, we only use your physical address to determine tax rates, and we'll never use this to send you mail or distribute this information to any third parties.
(For businesses: if your business has nexus in Texas, then you will need to pay sales tax.)
What does having nexus in Texas mean?
(Having nexus in the state of Texas only applies to businesses that use MyWikis.) Simply put, having nexus in Texas is a specific way of saying an entity has enough ties to the state of Texas to be bound by state law, as relating to Texas's business laws. Usually this means you have some form of physical presence in Texas. If you're not sure, you may fill out this questionnaire (AP-114) and submit it to the Texas Comptroller of Public Accounts. They will then give you a definitive response.
Why don't other American customers not based in Texas have to pay sales tax?
Texas sales tax only applies to entities that are based in Texas. Due to the U.S. Constitution's Commerce Clause, the state of Texas's sales tax laws do not apply outside of the state. Furthermore, the state of Texas does not authorize us to collect sales tax on out-of-state customers. As a result, we cannot collect sales tax from customers in other states. However, we must collect sales tax from all customers in Texas, with few exceptions. We apologize for any inconvenience.
The 2018 Supreme Court case South Dakota v. Wayfair decision makes it potentially necessary for MyWikis to collect sales tax for clients in states other than Texas. At the moment, we do not meet the threshold in revenues that makes this necessary for any state outside of Texas. If this changes, we will notify the customers located in that state. MyWikis benefits from the even geographical distribution of our clients across all 50 states, making it possible for us to not collect sales tax in 49 states. We are excited to pass the savings onto you!
Our business has nexus in the state of Texas as determined by the Texas Comptroller of Public Accounts, but we don't have a physical address in Texas. Are we supposed to pay sales tax?
Yes, we will need to make an adjustment in our system to reflect this status for your account. Please open a ticket so we may make the necessary adjustments.
Can I use a non-Texas address to get around the sales tax imposition?
We do not recommend you attempt to dodge our sales tax by providing an address outside of Texas. Knowingly evading sales taxes is a violation of Texas law. Legally, you must pay Texas sales tax if you have nexus in Texas. You should let us know immediately if you have nexus in Texas but your primary address is not within Texas, as you would still be required to pay sales tax to us.
We are a Texas nonprofit entity exempted from sales taxes. Can you exempt sales tax for us?
We would be happy to do so. Please note, we cannot exempt sales tax until the proper exemption procedure has been carried out.
To request an exemption, please fill out and sign Form 01-339, available from this link. Then, send a PDF of the filled and signed form to customer support. Once this is approved, we will remove sales tax from your total costs.
If you previously paid sales tax as an exempted nonprofit entity, we are unable to refund this to you, but you may request a refund from the Comptroller's Office.
Isn't the sales tax rate 6.25%? Or is it 8.25%? Why do you only charge 6.6% sales tax?
As a web hosting service provider, MyWikis is considered a "data processing service" by the state of Texas. 20% of the price collected for data processing services are exempt from sales tax. Therefore the effective sales tax rate is 8.25% x (100% - 20%) = 6.6%.
The location at which MyWikis LLC is based has a sales tax rate of 8.25%. Even if you live in an area with a different rate, Texas requires us to uniformly collect at this rate (not accounting for the 20% exemption, bringing the effective rate to only 6.6%) for all in-state customers.
EU and UK VAT
Why doesn't MyWikis collect VAT?
Since we are a small company, we do not collect VAT from European Union or United Kingdom customers at the moment due to current regulations. We'll inform all EU and UK-based customers if this changes.
Is there any way we can be prepared for such a change?
If we begin to collect VAT, we will inform all EU and UK customers about appropriate billing changes as soon as we can. If you are a EU or UK-based company, you may choose to provide your VAT number in your profile right now. We won't be using this at the moment, but in the future, we may.
How does Brexit impact the current EU VAT exemption made by MyWikis?
In 2020, we do not meet the threshold for requiring VAT payments from our UK-based customers.
Since we are a small company, we do not collect GST from Australian customers at the moment due to current regulations. We'll inform all Australian customers if this changes.