Sales Tax FAQ
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Why are United States residents being charged sales tax?Back to Top
As a result of the June 21, 2018 Supreme Court case, South Dakota v. Wayfair, Inc., states are now allowed to charge sales tax to retailers who do not have a physical presence in the state, but meet nexus guidelines. Not all states have laws that assess sales tax on out of state retailers; however, the ever-changing regulatory environment will continue to evolve.
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Who do I contact if I have more questions regarding sales tax?Back to Top
Please direct any questions you may have to irsquestions@toastmasters.org.
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How does this affect me?Back to Top
Residents of each state will be affected by this change differently. Sales tax will be applied to product purchases from the Toastmasters Online Store, Pathways Path purchases, and more.
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Will this affect my membership dues?Back to Top
Some states will charge sales tax on membership dues. If you notice an increased cost when paying your dues, it will be due to your state’s sales tax laws.
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How will my club know when to add sales tax onto invoices that are made online in Club Central, or requested from World Headquarters?Back to Top
Toastmasters International is taking the necessary steps to update systems and forms for internal orders, to ensure that the appropriate sales tax information is provided on all purchases. Orders online through Club Central will automatically include the appropriate sales tax.
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What items will be charged sales tax and which will not? Will I be charged for an award certificate? Will I be charged for free brochures/pamphlets?Back to Top
Residents of each state will be affected by this change differently. Applicable sales tax will be applied to product purchases from the Toastmasters Online Store, Pathways Path purchases, delivery, and more. For example, free items are not charged sales tax, but some states charge sales tax on the handling.
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Will this affect me if I do not live in the U.S.?Back to Top
This will only affect you if you ship something to a state within the U.S. that is impacted by this ruling.
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If I live internationally, but I have my package shipped to someone in the U.S., how will this affect me?Back to Top
Sales tax will be applied to product purchases from the Toastmasters Online Store, Pathways path purchases, and more, if being shipped to a state affected by these sales tax rules.
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What about new path fees? Would members be charged tax on their first purchase?Back to Top
Sales tax would be added to printed or digital products according to each state’s guidelines in which the item is received. Since the New Member Fee is required to receive access to digital content on the online learning management system (Base Camp), in some states that is considered a digital product and is taxable (per tax code in your state). In addition, printed paths will be charged tax in any state which taxes tangible personal property. An up-to-date list of the states in which tax is potentially applied can be viewed here.
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Will online Toastmaster clubs be affected by these rules?Back to Top
Online Toastmasters clubs will be affected by these rules just like the non-online clubs. All individual product orders and services would be taxed according to the states guidelines in which the item is shipped.