What are my obligations for remitting sales tax?
Your obligation to collect and remit sales tax will depend on the state in which you are conducting business. If you have any questions regarding your specific obligations, we recommend that you consult with your tax professional.
To make the remittance process easier, wellevate℠ will provide you with sales tax calculations and data related to your sales to customers in an easy-to-use format that you can utilize when you file any relevant sales and use taxes.
Why doesn’t wellevate℠ remit the sales tax on my patient purchases?
wellevate℠ takes compliance seriously, and we’re here to ensure that you and your practice maintain compliance through all of your patient transactions.
Although wellevate℠ is a digital storefront for your customers, neither Emerson nor wellevate℠ are making sales directly to your customers. All wellevate℠ transactions are between you and your customers; therefore, you—as the seller of record—have an obligation to collect and remit sales tax if your state requires you to do so.
Note for California practitioners: If you are located outside of California but your patient is located within California, the state requires that Emerson collect and remit sales tax on that transaction.
How does wellevate℠ ensure it is accurately collecting required sales tax?
wellevate℠ utilizes a third party tax engine to calculate sales tax based on a number of factors, including but not limited to, jurisdictions that you are registered in, ship from and ship to locations and taxability of each product by state. As part of this process, wellevate℠ will calculate the amount of sales tax that to be collected by a third party payment processor, on your behalf, from your patients that are located in the states in which you conduct business.
My state does not tax dietary supplements or other related products, why do I need to provide a reseller certificate?
We understand that some states do not tax dietary supplements, however, wellevate℠ sells a number of products that states could deem taxable.
To help keep you compliant, our third party software will calculate sales tax on a state-by-state and product-by-product basis, and if no tax is required on an item, it will not be collected.
If you have questions about the tax decision populated in the tax software, we can work with the software provider to change the tax for the product if you are able to substantiate the exemption.
States could also change their tax classification on products. To ensure that we are correctly collecting any required sales tax on your behalf, we require resale certificates at registration so we have documentation.
Why am I being asked for a retail certificate at registration?
To ensure that your business is compliant and well taken care of, we require resale certificates at registration.
We know this can seem confusing at first, so to make it easier, here’s how it works:
- In order to set up your account as tax exempt, we must have a resale certificate on file.
- While wellevate℠ is free to use, and there are no overhead costs, in legal terms you are purchasing items for your dispensary from Emerson Ecologics to be resold to your customers, just as you do with items you sell at your practice.
- Having a resale certificate on file signals that you should not be charged the sales tax on the items patients purchase, and it keeps you compliant!
This certificate signals that you should not be initially charged for sales tax on the items patients purchased from your dispensary, because you will later make a tax determination—and potentially collect the sales tax from your customers—when the items are sold.