Article 0935
Frequently Asked Questions
How is sales tax calculated?
Sales tax is calculated based on the Retail Price of the items ordered, not the price at which they were purchased from Plexus.
Plexus has both Customer (Retail and Preferred) and Ambassador accounts. Customer accounts are not set up to sell products, so as "end users" they pay tax (based on their ship-to location).
Some Ambassadors may purchase products to sell to others (as part of their business), while other purchases may be for their personal use. Unless the Ambassador has a "Sales and Use Tax Exemption Certificate" accepted and on file with Plexus, the Ambassador will still be charged sales tax (based on ship-to location) for their purchases.
Regarding ship-to locations, some states will tax nutritional products, while others do not. All states currently tax cosmetic products, such as Ease Cream. The Success Kit which includes the Annual Membership Fee is also taxable, whereas the Annual Membership Fee renewal is not taxed.
Why are all types of customers charged sales tax on the suggested retail price?
All customers are charged sales tax on the retail price they pay. When 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 Ambassadors and that they then sell on to their customers. This means that the Ambassador does not have to collect and remit the sales tax personally on each customer sale. Plexus is not involved in the sales by an Ambassador and therefore treats all sales to Ambassadors as potentially being intended for retail sale by the Ambassador.
What address is the sales tax based off of?
Sales tax is calculated based on the address the items are being shipped to which may be different from the billing or main address.
Why does tax differ between different addresses?
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.
Why has the tax changed between two orders sent to the same address?
Tax laws change all the time. An order shipped to an address today may have different taxes charged at a later date if state and local tax ordinance changes take effect during that time.
What cosmetic goods does Plexus sell and are they always taxable?
Cosmetic goods are subject to sales tax in all states. Plexus cosmetic goods include: Ease Cream, Body Cream, Joyōme™ Illuminating Day Serum and Joyōme™ Intensive Overnight Repair
Are nutritional goods taxable?
Certain states do not charge sales tax on nutritional goods. Contact your tax accountant for more information.
Sales taxes are a complex and ever-changing subject. If you have questions about sales taxes for a jurisdiction in which you are doing business or are considering doing business, please consult your tax accountant.
How are Sales Tax treated?
Treatment of sales tax as it relates to product orders can be found on Page 18 of the Ambassador Policies and Procedures document (Section 6H – 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. 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 be the responsibility of the Ambassador. Seeking the advice of a tax professional is recommended to determine tax issues for each Ambassador and their business. It is the responsibility of the Ambassador to provide an updated copy of its certification for exemption from sales tax each year. Please note that Plexus collects and remits sales tax as a service to 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.