Wellevate Sales Tax Change FAQs, Effective 01/01/2019
Effective January 1, 2019, Wellevate will now collect and remit sales tax on behalf of the practitioner on all purchases made in their online dispensary. This change will automatically go into effect on the first of the year, and requires no action to be taken. We’re confident this addition to the services we provide will reduce the administrative burden on our customers while still keeping their practices compliant with all state and federal sales tax collection laws.
Q: Can I cancel/terminate my sales tax license? Do I still need to file sales tax returns?
A: Every business has unique tax obligations. If you are selling products online, most states require the seller to hold a sales tax license, even if all products are tax exempt.
You may be required to file sales tax returns. Practitioners should work with their professional tax advisor to understand their personal, business, and/or corporate tax obligations throughout the US.
Q: Will Wellevate start automatically collecting sales tax on my Wellevate sales?
A: Yes. Beginning with any orders on or after 1/1/19, Wellevate will begin charging, collecting and reporting sales tax in nearly every state.
Shipments to Delaware, Montana, New Hampshire, Oregon, Puerto Rico and any US territory (such as Guam, US Virgin Islands) will not be assessed sales tax at this time.
Practitioners remain responsible for any other taxes assessed which may include Gross Receipts tax, Income Tax, Business Licenses & fees, Use Tax, Business and Occupational taxes, Commerce Tax, etc. and should refer to their professional tax advisor on how to file.
Q: What happens to the taxes collected before 1/1/19 and after 1/1/19?
A: For any shipment on or after 1/1/19, Wellevate will begin reporting and remitting all sales tax collected on your behalf. You do however remain responsible for any sales tax audits on these taxes and Wellevate will provide audit support upon request.
For any shipment before 1/1/19, you remain responsible for reporting and remitting these taxes to your taxing authorities. Reporting will remain available on your Wellevate platform for you to pull down for at least 12 months under Account Settings.
Q: How can I obtain my tax reporting for any taxes?
A: For any taxes collected before 1/1/19, you can continue to access reporting from your Account Settings.
Any taxes charged on or after 1/1/19 are available upon request. Please send an email to firstname.lastname@example.org requesting a report. Please allow 5 business days for a response.
Q: I only sell dietary supplements and they are exempt in my state. Are you going to be charging tax on all products I list on my Wellevate account?
A: No. Emerson will only be assessing sales tax on those products deemed taxable by the ship to state and local taxing authorities. We use a 3rd party taxing software to help us make this determination.
If dietary supplements are not subject to sales tax, in the ship to state, your patients will continue to see these items as tax exempt on their orders.