Frequently asked questions

Below are answers to some common questions regarding TransUnion Risk and Alternative Data Solutions, Inc. (TRADS) billing changes and collection of sales tax. If you require further assistance, please contact TLOxp® Customer Service at 888-493-2209.

Sales Tax

What is Sales Tax?

Sales tax is a direct tax levied on the purchase of goods and services that is generally calculated as a percentage of the purchase price. Sales tax is paid by the purchaser, collected by the seller and remitted to the state or agency where goods and/or services were delivered.

Why am I being charged Sales Tax?

TransUnion Risk and Alternative Data Solutions, Inc. (TRADS) collects sales tax on services sold to customers located in states where TRADS has tax nexus. Depending upon each individual state’s sales tax laws and how they apply to services, including internet services, there may or may not be tax collected. For services sold in states where TRADS does not have tax nexus, no sales tax will be collected.

As of 9/1/2016 TRADS will be required to collect sales tax in the following states:

  • New York: Information Services ARE taxable; Professional Services are NOT taxable.
  • Texas: Information Services ARE taxable; Professional Services are NOT taxable.
  • New Jersey: Information Services ARE taxable; Professional Services are NOT taxable.

What is the definition of "tax nexus"?

Nexus is defined as physical presence. This presence gives the state the right to require a company to pay or collect and remit certain taxes.

Can nexus change?

Yes. A state where there may not be nexus now may change at any time.

How is my Sales Tax calculated?

Your sales tax is calculated by multiplying the total cost of the services you purchased from TRADS by the applicable tax rate. The tax rate that is applied is determined by the state in which the service was delivered to you.

You may click on the following links for more information regarding sales tax rates:
Click here to search a free interactive map of sales tax rate territories >

Are you collecting tax for the state where TRADS is located or the state where your customer is located?

TRADS collects sales tax for the state in which the service was delivered to our customer.

Why are sales over the internet taxable?

If a company selling goods over the Internet and has nexus in the state of delivery, then that company will be required to register as applicable to collect sales tax as required by that state’s sales tax laws on all taxable items, regardless of method of order placement.

Exemption

What is a Tax Exemption Certificate and can I use one?

Purchasers are required to pay sales tax unless they present the seller with certification that the purchase is exempt from tax. The certificate must be on a form approved by the state.

Exemptions typically fall into two categories: usage based or entity based.

An example of use based exemption would be services or products that would normally be taxable but are used in a manner that is exempt. The resale exemption is the most common use based exemption.

Entity based exemptions are when the item or service is exempt solely because the purchaser is in a category the state has deemed exempt. Examples of exempt entities: government (federal, state or local), non-profit organizations, religious organizations, tribal governments. Each state has different rules around which exemptions they will grant.

Why are exemption certificates required?

Selling a taxable item or service to a customer requires collection of sales tax unless a properly completed exemption certificate is presented. The exemption certificate is proof that the taxable item was purchased by an exempt organization or for exempt use.

What is a Blanket Certificate of Exemption?

A blanket exemption certificate is used to make a continuing claim of exemption from the same vendor to cover additional purchases of the same general type of service. Each invoice must show the purchaser’s name and address that is shown on the exemption certificate.

To obtain a Certificate of Exemption please follow the link below to Avalera CertExpress:

Tax Exempt

 

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