Taxes applied to OnZoom in the United States
Are OnZoom ticket sales subject to sales tax?
Depending on the host organization, the attendee organization, the type of event (live or recorded), and the taxable status of the event, indirect tax rules can differ significantly from country to country. It may be necessary for Zoom, if these attributes are applicable, to collect and remit taxes in addition to the listed ticket price provided by the Host.
As a U.S. based Host, am I responsible for charging, collecting and remitting taxes on my ticket sales?
Generally speaking, under U.S. Internet marketplace rules, the marketplace platform, which in this case is Zoom, is responsible for charging, collecting, and remitting sales tax on behalf of the host, as well as other applicable indirect taxes that may be imposed on admission charges. OnZoom will calculate and add the tax exclusive of the Host‘s listed ticket price to the on-line ticket purchase if a tax is applicable on the sale of an OnZoom event ticket. After the Attendee pays the tax to Zoom, Zoom will remit the tax to the appropriate tax authority.
How does Zoom determine where a Host is located?
According to the information you provided when registering as a Host on OnZoom, Zoom will determine the location of the Host. It is critical that you provide Zoom accurate information regarding the location of your place of business in order to ensure the proper obligation to collect and remit sales taxes. In the event that Zoom receives inaccurate information regarding your establishment, it will be unable to remit sales taxes on your behalf.
How does Zoom determine where an Attendee is located?
According to the data provided during the checkout process by the attendee, the location of the attendee is calculated based on his “Sold To” address. There are various indirect tax rules which vary according to the location of the Attendee; therefore, it is necessary to provide Zoom with accurate information regarding the location of the Attendee.
Does Zoom collect state & local taxes in the United States?
Upon receipt of a ticket order from an Attendee or Attendance, Zoom is required by law to collect and remit taxes and/or fees on the tickets for the Attendee or Attendance. According to the tax rate applicable to the purchaser’s state, county, and locality of residence, an estimated fee or tax will be added to the listed ticket price in addition to the listed ticket price. ZOOM will make sure that any tax and/or fee collected by them is remitted to the appropriate taxing authority.
What if I am exempt from sales tax?
Tax exemption rules for the admission of ticketed events may differ from the tax exemption rules for the purchase of tangible personal property. If you are a United States customer wishing to request a tax exemption on your event ticket purchase through the Zoom Payment Support page, please submit a request through the Zoom Payment Support portal.
It will be reviewed to determine if the exemption is applicable to admissions to a ticketed event once your application and documentation is reviewed. Our team of tax professionals encourages you to speak with a tax professional if you are uncertain about your eligibility for exemption from sales tax in order to better understand your tax obligations. Please note that Zoom cannot offer you tax advice.
The particular tax situation of each Host and Attendee is unique, as is their specific tax situation. This document is not intended to be tax advice, but instead to provide a general overview of all the relevant tax rules that are associated with OnZoom in order to assist you in your decisions. Zoom collects sales tax and/or other indirect taxes on behalf of Hosts and remits them, if such requirements are specified in the terms of the Connect Marketplace; however, Hosts are responsible for all other indirect and non-indirect taxes resulting from sales made via Connect Marketplace.
Unlike a professional tax advisor, Zoom cannot provide detailed tax advice based on a user’s personal circumstances, and for this reason we recommend you seek advice from a professional tax advisor.