Taxes applied to OnZoom in the United States
Are OnZoom ticket sales subject to sales tax?
I think it is important to understand that indirect tax rules vary greatly depending on several factors, such as where the host is located, where the attendee is located, as well as the type of event (a live event or a pre-recorded event). There may be instances when Zoom will be required to collect and remit taxes in addition to the price of the tickets displayed by the Host as a result of these attributes.
As a U.S. based Host, am I responsible for charging, collecting and remitting taxes on my ticket sales?
It is the responsibility of the marketplace platform, which is Zoom, under U.S. internet marketplace rules to charge, collect, and remit sales tax and other applicable indirect taxes to the IRS for any amount that may be imposed on the Host as a result of the sale of event tickets. Zoom will calculate and add tax to the OnZoom event ticket sale if the Host identifies a tax requirement when listing the ticket price for the event. The Attendee will be notified by Zoom that they must pay tax to Zoom, and Zoom will then remit the amount to the appropriate tax authority.
How does Zoom determine where a Host is located?
When you register as a Host on OnZoom, Zoom uses the information that you provide about your location as a Host in order to determine the exact location of the Host. Based on where the Host is located, there will be different rules regarding indirect taxes and who is responsible for collecting and remitting sales taxes. It is therefore extremely important that you provide Zoom with the correct information regarding where the host is located.
How does Zoom determine where an Attendee is located?
The location of the attendee is determined by the address that they provide for the “Sold To” address during the checkout process on the website. As a result, indirect tax rules vary according to where the Attendee resides; for this reason, it is crucial that Zoom has correct information about the Attendee’s location when sending out an invitation to attend a Zoom meeting.
Does Zoom collect state & local taxes in the United States?
Ticket sales to Attendees located in certain jurisdictions may be subject to taxes or fees that Zoom is obligated by law to collect and remit. In addition to the listed price of the ticket, you will find an estimate of additional fees and taxes based on the tax rate of the state, county, and locality in which the purchaser resides. Taxes and/or fees collected from the Attendee will be sent to the relevant taxing authority after Zoom has collected them from the Attendee.
What if I am exempt from sales tax?
There may be some differences in the rules governing tax exemptions on admissions to a ticketed event and those governing tax exemptions on tangible personal property purchases with respect to tickets. In the event that you are a U.S. attendee who is planning to claim a tax exemption the next time you purchase a ticket for a Zoom event, please contact Zoom Support as soon as possible.
We will review your request for exemption and your supporting documentation prior to determining whether or not your exemption can be applied to admission fees for a ticketed event. It is important to refer to a tax professional if you are unsure whether you qualify for exemption from sales tax and would like to obtain a better understanding of your tax obligations. We are unable to offer tax advice to you as Zoom is not a tax advisor.
Disclaimer
There is no such thing as an ordinary host or attendee, and so every individual’s tax situation is unique as well. This document should not be construed as a piece of tax advice, but rather as an overview of some of the pertinent tax rules that are related to OnZoom, but should not be interpreted as tax advice. It is Zoom’s responsibility to collect, remit and remit sales tax, as well as other indirect taxes in accordance with specific rules that govern its marketplace. Hosts are responsible for ensuring that all indirect and non-indirect taxes are paid in accordance with any limitations or restrictions imposed on them by Zoom.
You should seek professional tax advice for specific advice pertaining to your individual situation, as Zoom cannot provide you with tax advice for your individual case. For tailored advice specific to your particular case, we suggest you speak with a professional tax advisor.