Introduction

In April 2025, Lofty will begin charging applicable sales tax. The sales tax rate may vary, depending on the products purchased and the purchaser's location. Please verify your billing address in the Billing Center and update accordingly.

FAQs

Why are you charging sales tax now?
We are required to collect and remit sales tax in certain states to comply with changes in tax regulations.

How do you calculate the sales tax amount?

Sales tax is determined based on your billing address and applicable state or local tax laws. If your location requires sales tax on software as a service, we must collect it. Sales tax is calculated based on your billing address and the applicable state and local tax rates. We are using a software called Avalara. 

Will sales tax apply to all of your products and services?
Sales tax generally applies to our software subscriptions, but it may not apply to all services. Tax applicability depends on your state and local regulations.

Is sales tax included in my subscription price or added on top?
Sales tax is added on top of your subscription price and displayed as a separate line item on your invoice.

How will sales tax appear on my invoice or billing statement?
Sales tax will be listed as a separate charge on your invoice under "Taxes" or "Sales Tax." You will see the tax amount and rate applied.

I live in a state/country without sales tax. Do I still have to pay?
If your billing address is in a state or country without sales tax, we will not charge sales tax on your invoice.

My business is registered in a tax-free state, but I use the software in a taxable state. Which tax rules apply?
Tax is determined based on your billing address. If your billing address is in a tax-free state but your usage is in a taxable state, you may still be responsible for self-reporting use tax.

Do I have to pay sales tax if I am outside the United States?
Sales tax generally applies to those in the United States. If you are outside the U.S., VAT or GST may apply, depending on your country’s tax laws.

What if my business is tax-exempt? How do I provide a resale or exemption certificate?
If your business is tax-exempt, please provide a valid exemption certificate to your CSM or contact our support team. Once verified, sales tax will no longer be charged.

What if I believe I was incorrectly charged sales tax? How do I dispute it?
If you believe you were incorrectly charged sales tax, contact our support team with details. We will review and correct any errors if applicable.

Will sales tax apply to previous invoices or just new charges?
Sales tax will apply only to new payments after April 1, 2025. Previous invoices will not be affected.

How will this affect my recurring subscription payments?
Your subscription payments will include applicable sales tax starting in April 2025. The tax will be calculated and added to each billing cycle.

Will my payment method be charged automatically for sales tax, or do I need to update my billing details?
Sales tax will be automatically included in your charges. You do not need to update your billing details unless you have an exemption certificate.

Will sales tax be charged on prorated or discounted invoices?
Yes, sales tax will be applied to prorated or discounted invoices based on the final taxable amount.

What happens if I don’t pay the sales tax portion of my invoice?
Failure to pay the full invoice amount, including sales tax, may result in account suspension or service interruption.

Will I receive a sales tax report for my records or tax filings?
Yes, sales tax details will be included on your invoices, which you can access in your billing portal for tax reporting purposes.

Questions?

If you have any questions regarding this topic or any others, please reach out to our Support Team via email at <support@lofty.com>, by phone at 1 (855) 981-7557, or by chat with us through your CRM.