January 2024 sales tax and GST billing changes - what you need to know
As part of continued updates to our product and billing systems, and in order to comply with local tax regulations, Typeform is now registered to collect sales tax in Australia and Canada.
This means that you may see additional charges on your Typeform invoices from January 2024 onwards if your billing address is located in Australia or Canada. The exact amount depends on your area’s tax regulations for digital services.
If you're not in Australia or Canada, see where else we collect taxes on Typeform purchases.
Keep reading for more details.
What is sales tax?
Sales tax is a levy imposed by a governing body on the final sale of a product or service. It is collected by the seller (in this case Typeform) from the consumer (in this case the Typeform account holder) at the point of purchase.
In Australia, sales tax is collected under the Goods and Services Tax (GST) system.
In Canada, sales tax is collected through various mechanisms, including the Goods and Services Tax (GST), Harmonized Sales Tax (HST), Provincial Sales Tax (PST), and Quebec Sales Tax (QST), depending on the specific province or territory involved.
Why is Typeform applying sales tax to my invoices?
Typeform is collecting sales tax as part of our legal obligation to comply with all applicable tax regulations in the areas where we do business.
Since tax law varies between and within countries, this change won’t affect all Typeform users equally, or at the same time. We recommend checking with your local tax authorities to confirm tax regulations for digital services.
The following documentation might be a good starting point for customers in Australia and Canada:
- Australian government documentation
- Canadian government documentation
How will this change affect me?
Typeform is now required to collect sales tax if your billing address is in Australia or Canada, ensuring compliance with local tax laws.
For Goods and Service Tax (GST) registered businesses, adding a GST number allows you to zero-rate your invoice. This activates the reverse charge mechanism, excluding GST from your invoices. However, you are responsible for accounting for the GST on your purchases from Typeform when filing your GST returns.
Note: You must provide your GST number before making the payment, as GST numbers cannot be applied retroactively to an invoice already paid.
Check out these instructions on how to add or update your GST/tax number.
If you need to double-check that your billing details are up to date, here’s how to do that.
If your billing address is in one of the following Canadian provinces, Provincial Sales Tax (PST) will be applied, irrespective of a valid GST number. However, you can deduct this amount from your GST return:
- BC, British Columbia
- MB, Manitoba
- SK, Saskatchewan
Take a look at this page to see where else sales tax is applicable on Typeform purchases.
When will I see sales tax charges on my invoices?
These changes will come into effect from January 2024. Once in effect (and if applicable to you), you’ll see the charge on all subsequent invoices.
My billing address is not in Australia or Canada. How does this change affect me?
If your billing address is not in Australia or Canada you won’t be affected by this change.
Typeform will reach out regarding any future billing changes that may affect your invoices.
If you have any questions or concerns about these upcoming changes, please feel free to reach out to our Support team for further information by clicking the Contact Support button at the bottom of this page.