Sales Tax Updates

ScanSource Registered Sales Tax States

(This list is subject to change)

If our Partners do not provide ANY Resale Certificate, we are currently required to charge sales tax in:

Arizona
California
Connecticut
Florida
Georgia
Hawaii
Illinois
Kansas
Louisiana
Mississippi
Maryland
Massachusetts
New York
North Carolina
Pannsylvania
South Carolina
Tennessee
Texas
Virginia

Most of the states above will accept a “Home State” resale certificate to exempt sales tax. However, the states below require our Partners to be registered in their specific state. If a state specific resale certificate is not provided for the following states, we are required to collect sales tax.

California
Connecticut
Hawaii
Illinois
Louisiana
Maryland
Massachusetts
Tennessee

Sales Tax Changes Effective January 2019

Effecting partners who sell into CT, HI, IL, LA & MA

In accordance with the enactment of new, state sales-tax standards—and recent rulings upholding those standards—ScanSource is now required to register for sales tax in the following states:

Connecticut
Hawaii
Illinois
Louisiana
Massachusetts

As of January 1, 2019, ScanSource is required to—and expects to have its systems and processes updated to—collect sales tax on all shipments into those states for which a valid, state-specific resale certificate and state registration have not been obtained. A “home state” or multi-jurisdictional form will not be acceptable for these states.

As your trusted partner, we want to make sure you are aware of these changes, and have plenty of time to complete the necessary steps. You can learn more about these new tax-law changes, and how to obtain resale certificates, at the following state websites:

REGISTER AS AN OUT-OF-STATE DEALER IN

Connecticut
Hawaii
Illinois
Louisiana
Massachusetts

For ship-to orders to be exempt from sales tax, the following must be sent to taxteam@scansource.com:

1. A valid state (CT, HA, IL, LA, MA) resale certificate AND

2. A state (CT, HA, IL, LA, MA) registration

Once we have received these documents, we will update your files to ensure that you are not charged sales tax in the applicable states. However, if you are unable to provide us a valid, state-specific resale certificate and state registration, ScanSource will be required to collect sales tax on applicable shipments beginning January 1, 2019. We understand these changes may affect your business so, if you have any questions or concerns about this change and how it will affect your business, please reach out to your company’s tax advisor.

As always, thank you for continuing to partner with ScanSource!

Sales tax changes affecting partners who sell into Québec Province

Effective October 1, 2019, ScanSource will begin assessing 9.975% Québec Sales Tax (QST) (in addition to 5% GST rate) on all drop-shipments into Quebec Province.

According to Québec’s new sales tax registration requirements, suppliers located outside Canada who are registered for the Goods & Services Tax/Harmonized Sales Tax (GST/HST) are also required to register to collect the QST based on the criteria listed below according to guidance published by Revenu Québec.

Suppliers located outside Canada who are registered for the GST/HST

Effective September 1, 2019, you must register for QST if:

You are a supplier located outside of Québec
You have made taxable supplies of corporeal movable property, incorporeal movable property or services
The taxable supplies were made in Québec to consumers and
Over a 12-month period preceding a particular calendar month, your specified threshold, or the total value of such taxable supplies (other than supplies of incorporeal movable property or services made through a specified digital platform), is more than $30,000

Click link below to learn more about the QST change and registration requirements:

Information: Registering As A Supplier Outside Québec

Sales tax changes affecting Canadian partners who sell into the US

Canadian partners who sell in the US will need to provide a State Resale Certificate to ScanSource in order for shipments to your US customers to be exempt from US sales tax. For these shipments to be exempt from sales tax, the following must be sent to taxteam@scansource.com

A valid state resale certificate AND
A state Sales & Use Tax registration

Once we receive these documents, we will update your file to ensure you are not charged sale tax in the applicable states listed below. However, if you are unable to provide a valid state resale certificate, ScanSource will be required to collect sales tax on applicable shipments to the following states, beginning October 1, 2019.

Arizona, California, Connecticut, Florida, Georgia, Hawaii, Illinois, Kansas, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, New Jersey, New York, Nevada, North Carolina, Pennsylvania, South Carolina, Tennessee,Texas, Virginia, Washington

We understand these changes may affect your business so, if you have any questions or concerns, we recommend reaching out to your company’s tax advisor.

Sales tax changes affecting partners who sell into Hawaii

Based on Hawaii General Excise Tax law, effective October 1, 2019, ScanSource will begin charging a half of a percent (0.5%) wholesale tax rate or the full General Excise Tax rate (see GET rates HERE) for any drop-shipments into Hawaii.

Sales partners who claim they are purchasing for “resale at retail,” and provide the Resale Certificate for Goods (Form G-17) for hardware exemption and the Certificate for Sales of Services Which Qualify as Wholesale Transactions (Form G-82) for services exemption, will be assessed the 0.5% wholesale tax rate.

Sales partners who claim they are purchasing for “resale at wholesale” will not be charged the wholesale rate. If both are claimed, the partner’s company will be recognized as “resale at retail,” and the 0.5% wholesale rate will apply.

All software licenses and software as a service (SaaS) purchases are taxable and cannot be exempt from the General Excise Tax (see GET rates HERE).

Sales partners whose companies are registered in Hawaii must provide HI Resale Certificates (both forms G-17 & G-82). These forms require your HI Tax Identification # and that you select whether you are reselling at retail or wholesale. Please return the completed forms to taxteam@scansource.com.

Sales partners whose companies are NOT registered in Hawaii and have not provided a G-17 and/or G-82 Resale Exemption forms, will be charged the appropriate General Excise Tax rates (see GET rates HERE).

Once we receive these documents, ScanSource will update your account to ensure your company is charged the correct tax rates set forth by the state of Hawaii. If you have any questions or concerns about Hawaii General Excise Tax, please reach out to your company’s tax advisor.