Do I have to pay Sales Tax for my FreshBooks account?
FreshBooks is required to charge sales tax on your FreshBooks subscription in certain geographic locations. This is applicable to Canadian and US residents in the following places:
Canadian users in all provinces are required to pay the applicable provincial sales tax. This sales tax will vary by province:
- Alberta: 5% GST
- British Columbia: 7% PST + 5% GST = 12% total sales tax
- Manitoba: 8% PST + 5% GST = 13% total sales tax
- New Brunswick: 15% HST
- Newfoundland and Labrador: 15% HST
- Northwest Territories: 5% GST
- Nova Scotia: 15% HST
- Nunavut: 5% GST
- Ontario: 13% HST
- PEI: 15% HST
- Quebec: 9.975 PST + 5% GST = 14.975 total sales tax
- Saskatchewan: 5% GST + 5% PST = 10% total sales tax
- Yukon: 5% GST
American users in the following states are required to pay the applicable state sales tax and in some states, the county tax as well. Since the state and county taxes are applicable based on location, click on the link next to the state listed below that is applicable to you:
- Connecticut - State of Connecticut Department of Revenue Services, and also Section 407 (not exclusively)
- North Carolina - North Carolina General Assembly (primarily section 8)
- Washington State - Department of Revenue Washington State
Why do I have an extra 3% fee on my subscription?
You may find that you’re being charged an additional 3% on your payments to us for your FreshBooks subscription if paying outside of Canada and the US. This is due to us being based in Canada, where our payment processors are (we also have Amex as our processor in the US). This transaction fee is charged and collected by the banks themselves, and FreshBooks is unable to prevent these charges from happening.