As a company, it is imperative that we comply with local and state tax regulations. Simplexity Health has been charging sales tax ever since we were advised that we are legally required to do so. Because we have distributors in every state of the United States, we are what is considered an "established sales presence" in every state, and therefore are required to charge tax in any state that has a sales tax program.
Each Independent Business Associate is a distributor for Simplexity Health, and as such, he or she is able to purchase products at wholesale pricing. Sales tax on purchases made by an IBA will be based on the wholesale price.
Preferred Customers are not distributors, but do pay for their product at the wholesale price, so their tax will be based on the wholesale price.
Retail Customers, on the other hand, are clearly paying retail prices and will logically have that price be their tax base.
Do you have any recourse for not being charged sales tax through Simplexity Health? You can provide the company with documentation showing you have a resale certificate from your state—which means that you do not pay taxes when purchasing from Simplexity Health but instead take responsibility for paying taxes to local and state entities. When we have received such verification, we will continue to honor your resale certificate.
Because we work under the Personal Use Directive in Canada, and there is no choice but to have all sales go directly to the end consumer, the tax base for Canadians will be the amount paid for the order (with the only exceptions being those products that are noted as GST-exempt).