Hi all,
We just opened an account with ReveCom for credit card processing. I sent a query to support about the automatic calculation of taxes due for our state (Texas, USA). This was their response.
<quote>Dear Merchant,

As we are the payment processor, there is no sales tax applicable to each sale.

Merchant Support Services
</quote>

Anybody have any experience with this? Hosting is a new service for us. We have a regular Merchant account but decided to go with ReveCom to facilitate recurrent billing (we don't have dedicated accounting services)

Thanks for the help.

Basically, they are telling you that *they* don't charge *you* taxes on the service *they* provide. As for if you should charge *your* customers tax, that varies from state to state, etc. Generally, sales tax isn't charged on services across state lines, nor in-state, I *think*.

Check your local tax professional to be sure on this!!!

I agree. A CC processor just puts through the charge. You supply the total. If that includes tax it's up to you to put it in.

BTW, in most states you need to get a Sales Tax License or Permit from the state tax authority inorder to collect sales tax.

Just think of Revecom as a piece of software. They do one thing, and that's charge credit cards the amount you wish them to. They also check to see if that card is valid, and provide recurring billing.... that's it. :)

Beyond that, it's up to each person or company involved to work out the finer details of the business. Taxes vary from state to state, country to country, and in some cases isn't relevant at all.

As mentioned, if it worries you, build in an amount for tax and put it aside in case it becomes an issue come tax time.

Greg Moore

I think I will create a separate catalog for our Texas customers with the taxes preconfigured. A little work, but it ought to keep things legit. We deal with the state comptroller only once a year, so that should give us plenty of time to gather the info. we need by tax time.