Does Plex collect sales tax in the United States?
Plex does collect sales tax on behalf of the states for transactions (on subscriptions billed and managed directly by Plex) from accounts located in applicable states. Tax rates can vary by county, city, or state, and are based on the rates applicable at the time of the subscription transaction charge. These amounts can change over time with local tax requirements.
Do the advertised prices include sales tax?
The advertised prices for Plex Pass or TIDAL subscriptions do not include sales tax. If sales tax applies, it will be stated separately on the subscription receipt, which can be accessed in the account Payments page.
Why is sales tax collected?
The U.S. Supreme Court decision in South Dakota v. Wayfair, Inc. resulted in a fundamental change in state taxation, by granting the state authority to impose sales tax on out-of-state transactions without requiring the seller’s physical presence in the state. Wayfair overturned a long-standing physical presence standard in favor of economic factors as the basis for determining taxability, typically the number of sales transactions and/or sales dollars over the prior 12 months.
In the wake of Wayfair, not surprisingly, a growing number of states have begun to adopt these economic factors to determine and collect sales taxes, and Plex is now required to collect and remit state and local sales tax on each subscription (billed and manage directly by Plex) sold in those states. All of the sales tax collected for a transaction is remitted to the appropriate state/jurisdiction and Plex does not retain it.
Where is sales tax collected?
While the list most certainly will change over time, as of 2019-10-30, the following states/jurisdictions will have sales tax collected by Plex:
- District of Columbia
- New Jersey
- New York
- North Carolina
- South Dakota
- West Virginia
Subscription transactions from accounts located in these states/jurisdictions will have their appropriate sales tax collected.
Does this apply to all subscriptions?
Sales tax will be collected for all subscriptions, that are billed and managed by Plex, from accounts located in applicable states. This would include Plex Pass subscriptions (lifetime plans as well as recurring transactions) and TIDAL subscriptions.
Subscriptions through an app store such as Google Play or iTunes will not have sales tax collected by Plex itself, though the app store will likely collect relevant sales tax itself.