Taxes applied to Zoom Events in the United States
This article covers:
- Are Zoom Events ticket sales subject to sales tax?
- As a U.S. based host, am I responsible for charging, collecting and remitting taxes on my ticket sales?
- How does Zoom determine where a host is located?
- How does Zoom determine where an attendee is located?
- Does Zoom collect state & local taxes in the United States?
- What if I am exempt from sales tax?
Are Zoom Events ticket sales subject to sales tax?
Indirect tax rules vary significantly depending on the location of the host, the location of the attendee, and the type of event (i.e. a live event or a pre-recorded event). Based upon these attributes, Zoom may be required to collect and remit taxes in addition to the host’s listed ticket price.
As a U.S. based host, am I responsible for charging, collecting and remitting taxes on my ticket sales?
Under U.S. internet marketplace rules, the marketplace platform, which is Zoom, is responsible for charging, collecting and remitting sales tax and other applicable indirect taxes that may be imposed on event ticket sales on behalf of the host. If tax is required on the sale of a Zoom Events event ticket, Zoom will calculate and add the tax exclusive of the host’s listed ticket price. Zoom will then collect the tax from the attendee and remit it to the appropriate tax authority.
If you are a U.S. based host that is a tax exempt entity, your exemption status may extend to the sale of your event tickets hosted on Zoom Events. You can review your tax status as a host under the Billing Address information within the Billing Management section of your ZoomEvent account. If you have any questions regarding your exemption as a host, please please submit your inquiry through Zoom’s Billing Support portal at https://support.zoom.us/hc/en-us/requests/new.
How does Zoom determine where a host is located?
Zoom determines the location of the host based on information provided by you when registering as an host on Zoom Events. The indirect tax rules and responsibilities for who collects and remits sales taxes will vary depending on where the host is located; as such, it is important that the information provided to Zoom regarding your place of establishment is correct.
How does Zoom determine where an attendee is located?
Attendee’s location is based on the "Sold To" address location they provide during the checkout process. Indirect tax rules vary depending on where the attendee is located; as such, it is important that the information provided to Zoom regarding the attendee’s location is correct.
Does Zoom collect state & local taxes in the United States?
Zoom is required by law to collect and remit taxes and/or fees on tickets sold to attendees located in certain jurisdictions. The ticket purchaser will see estimated taxes and fees in addition to the listed ticket price based on the tax rate of the purchaser’s state, county, and locality of residence Zoom will remit all taxes and/or fees collected from the attendee to the appropriate taxing jurisdiction.
What if I am exempt from sales tax?
Rules on tax exemptions for admissions to a ticketed event may vary from tax exemptions on the purchases of tangible personal property. If you’re a U.S. attendee that would like to claim a tax exemption on your event ticket purchase, please submit your request through Zoom’s Billing Support portal at https://support.zoom.us/hc/en-us/requests/new.
Your request and documentation will be reviewed to determine if your exemption can be applied to admissions to a ticketed event. If you’re unsure whether you qualify for exemption from sales tax, we encourage you to consult a tax professional to better understand your tax obligations. Zoom is unable to provide you tax advice.
Every host and attendee is unique and so are their specific tax circumstances. The information in this document should not be considered as tax advice, but as a general overview of relevant tax rules relating to Zoom Events. Where Zoom is required to collect and remit sales tax and/or other indirect taxes based on specific marketplace rules, Zoom will do so; however, hosts should ensure compliance with all other indirect and non-indirect tax liabilities arising from sales made via Zoom Events.
Zoom cannot provide you with tax advice for your individual situation, and therefore we recommend speaking with a professional tax advisor for tailored advice specific to your situation.
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