- Declaring tax-exempt status
- Declaring reseller status
- Tax FAQ
SendGrid now collects sales tax in 6 jurisdictions: Denver Colorado, Boulder Colorado, Chicago Illinois, Washington state, New York state, and Texas. We assign tax jurisdiction by the billing address you have in our system. If your billing address is in one of these jurisdictions, and you don’t have 501(c)(3) tax-exempt status, you will see a line for sales tax on your invoice. For more information about declaring your tax-exempt status, see Declaring tax-exempt status.
To declare tax-exempt status, email your 501(c)(3) (or equivalent) documentation to email@example.com.
When we receive your paperwork, we’ll verify it, and assign you tax-exempt status.
Resellers are responsible for collecting and verifying their own taxes and taxes for their customers, including sales tax. To declare your status as a SendGrid reseller, email your state reseller permit, purchase for resell exemption certificate, or similar document to firstname.lastname@example.org.
When we receive your paperwork, we’ll verify it, and assign you reseller status.
If SendGrid has a physical presence in a jurisdiction, and we directly sell a taxable product to someone located in that jurisdiction, then we are required to collect sales tax on behalf of that jurisdiction.
SendGrid collects sales tax in the following jurisdictions:
- Denver, Colorado
- Boulder, Colorado
- Chicago, Illinois
- Washington state
- New York state
To determine whether to add sales tax to your monthly SendGrid bill, we use the address you enter as your billing address in Settings | Plan & Billing Details in the SendGrid UI.
If you are being charged sales tax, you will see it as a line item on your invoice. You’ll be able to find the new sales tax line item by navigating to Settings | Plan & Billing Details in the SendGrid UI, then by viewing your invoice, which is in PDF form.
Unfortunately, we cannot provide estimates of sales tax for an individual customer ahead of time. The taxes assessed could change monthly for various reasons such as state or local tax laws changing. You can check your bill throughout the month for an estimate of your sales tax.
Taxes charged can vary month-to-month based on local tax laws changing, or if your product mix causes your bill to be ßgreater or less than in previous months.
Tax laws change regularly, so we work with a third party software that focuses on deeply understanding local and state tax laws. SendGrid uses this software to calculate the sales tax you are charged each month.
If you have any other questions about taxes, send an email to email@example.com.