If you’re like most professionals with any social medica savviness you’re probably a member of LinkedIn.com. I got an e-mail today stating that they’re now going to start charging sales tax on SERVICES?
In accordance with sales tax regulations, LinkedIn is required to collect state and local sales tax for products and services purchased by our members when applicable. Beginning November 1, 2011, local state or city tax will be applied to your LinkedIn Premium account balance.
Here are answers to some questions you may have:
• Why do I need to pay sales tax on my Premium account?
LinkedIn, like other online service providers, is required to collect sales tax for services provided. Premium accounts in the states of Connecticut, New Jersey, New York, Ohio, Texas and Washington, as well as the city of Chicago will be subject to this, in accordance with respective state, city or local laws.• When will I start being charged sales tax on my Premium account?
Sales tax will be applied to your Premium account beginning on November 1, 2011.• Do I need to update my billing information?
No. The sales tax will automatically be applied to your account balance moving forward.• What is the sales tax rate that will be applied to my Premium account?
The local sales tax for Texas is currently 6.75%-8.25%.If you have any further questions, please feel free contact us.
Regards,
The LinkedIn Team
When the states tried to do this to Amazon.com they completely abandoned their operations in taxing states. With the recent fallout regarding NetFlix and its customers and the precent set by Amazon, I’m not sure LinkIn has thoroughly evaluated all of its options. If they’re smart they will simply raise the price on their services $0.10 PER person to cover the taxes in the states that require sales tax to be paid. If they’re really smart they will follow suit and pull a stunt like Amazon to show the states that taxing online purchases won’t be taken lightly.
What do you think?