As of January 1, 2020, Klaviyo will begin collecting US sales tax on email billing payments. If you are not based in the US, you will not be subject to any US sales taxes. Taxes vary by jurisdiction, so tax rates will reflect the laws of the jurisdiction in which you operate. Sales tax rates vary and will be determined based on where you conduct business, the type of business you conduct (e.g. resellers), and the type of business you are (since certain nonprofits or government agencies may be excluded from sales tax requirements).
How Klaviyo Calculates Sales Tax
As mentioned above, sales tax rates vary depending on where in the United States your business operates. Klaviyo taxes you according to the state and local laws that govern the address listed as your organization's location.
Your company's default location can be found by expanding the dropdown next to your account name and selecting Contact Information > Organization.
View Sales Tax When Changing Plans
If you decide to change your plan, head to the Billing tab in your account, and select Email Billing. The sales tax is not included in the price per month of the listed plans. Instead, we include a disclaimer to alert you that your price may increase due to sales tax charges.
When you alter your plan by clicking Change, a modal will appear to collect credit card information to complete the upgrade.
Here, the Use my organization’s primary address as my billing address checkbox is enabled by default.
If your organization’s tax filings do not match the address provided for your organization, you can disable that setting and enter a different address. Otherwise, the default location will pull an estimated tax rate and amount that is added to your total cost.
There are some instances when we cannot determine the estimated tax rate; for example, if you are not located in a taxable location. If your estimated tax rate is unavailable, hover over the question mark next to Unavailable to view the reason.
When you select Upgrade Plan, Klaviyo will check that all inputs are valid. A success message will confirm that you've upgraded your plan successfully.
View Sales Tax on Invoices
When you pay your monthly bill, Klaviyo generates an invoice that includes a line item for calculated tax to reflect the total amount paid. You will also receive an email that includes the total amount charged and a link to the invoice.
You can click on the link to view your invoice for a complete breakdown of costs, including sales tax. You will also have the option to download your receipt and invoice as a PDF.
If you choose to download the invoice, your PDF will include Klaviyo’s address, your organization’s billing address, and the tax line item (including percentage charged and total amount charged).
If you choose to download the receipt, the PDF will include all items in the invoice along with your receipt number and payment method in the upper righthand corner of the document. In addition, Amount due will change to Amount paid.
To locate previous invoices, navigate to Account > Billing > Billing History.
Request Tax Exemption
Some nonprofits, religious institutions, educational organizations, research facilities, and others are considered tax-exempt. If you believe that your organization should be tax-exempt, you can follow the instructions for submitting a tax exemption application.
You will need to provide relevant documentation and certificates to get approval for tax exemption. This documentation will vary depending on the state in which you are located, so it's important to reference state laws before submitting them.
Klaviyo bills customers differently for email and SMS. If you need information on SMS pricing, head to How Klaviyo Bills Customers for SMS.