U.S. Sales Tax
Not all states charge taxes on the products we offer. Sales taxes are a complex and ever-changing subject. If you have a questions about sales taxes for a jurisdiction in which you are doing business or are considering doing business, please consult your tax accountant. We do not have a dedicated team to answer these questions.
How Sales Taxes are Calculated
For Brand Ambassadors sales taxes are calculated based on the Retail Price of the items ordered, not the price at which they were purchased from Plexus.
When Brand Ambassadors purchase Plexus products they may be purchasing to consume/use themselves or to sell to their customers. Our agreements with the State revenue agencies require Plexus to collect sales tax on the retail value of the products we sell to Plexus Brand Ambassadors and that they then sell on to their customers. This means that the Brand Ambassador does not have to collect and remit the sales tax personally on each customer sale. Plexus is not involved in the sales by a Brand Ambassador and therefore treats all sales to Brand Ambassadors as potentially being intended for retail sale by the Brand Ambassador.
VIP Customers and Retail Customers pay sales taxes on the purchase price of the products they purchase.
Plexus Annual Membership Fee Tax
The taxability of Membership fees (both enrollment and renewal) varies by state.
Sales tax is generally calculated based on the address the items are being shipped to which may be different from the billing or main address. Each jurisdiction (state, county, city, municipality) has different tax rates and may choose to tax certain items and not tax others. Orders shipped to the same city and state may be taxed differently if there is a local jurisdiction involved.
How are Sales Tax Treated
Treatment of sales tax as it relates to product orders can be found on Page 20 of the Brand Ambassador Policies and Procedures document (Section 6G – Ordering Company Products - Sales Tax, GST, VAT).
U.S. sales tax is collected on the Product’s sales in all states that have sales tax on Products that are subject to sales tax. Shipping and handling is calculated using the applicable rates for the location of where the Product is shipped. The Company will collect and remit sales tax to the proper taxing authority following collection. The Company may, in its sole discretion, accept “Sales and Use Tax Exemption Certificate” or equivalent document to the Company. If accepted by the Company, the collection of sales tax will then be the responsibility of the Brand Ambassador. Seeking the advice of a tax professional is recommended to determine tax issues for each Brand Ambassador and their business. It is the responsibility of the Brand Ambassador to provide an updated copy of his or her certification for exemption from sales tax each year. Please note that Plexus collects and remits sales tax as a service to Brand Ambassadors. Sales taxes are calculated based on the Suggested Retail Price of each item and shipping (where taxed) at the tax rates of all taxing jurisdictions that are in effect at the place to which the order is shipped on the date of the order.