Note: This post applies only to the customers with billing addresses in the United States.
Not all PagerDuty customers get charged sales tax, but in some states, it’s required by law.
If you see a sales tax charge on your billing statement, that means that your state’s law imposes sales tax on all SaaS products. PagerDuty didn’t use to collect this tax, but now we do. We base this on the state in which the sold-to address is located, and we then pay the collected sales tax to the respective state.
In the end, whether PagerDuty collects the sales tax and remits it to your state, or your organization calculates the sales tax owed and pays it directly to the state, your organization will be paying the same amount of money.
Every state has different tax laws, so for more details on how your state taxes the sales of SaaS products, you can read your local tax code.