Sales & Use Tax FAQs

Due to physical nexus requirements, your company is required to pay applicable sales and use tax on taxable services and/or expenses taking place in those states. Field Nation is required to collect or remit those taxes unless we have a valid exempt or resale certificate on file for every state where you conduct business that requires a tax. To see which states require sales & use tax on which service categories, check out this matrix.

If you have additional questions or need to submit an exempt or resale certificate, please contact [email protected].

Sales and Use Tax Overview

Sales and use tax is required by state and local governments on the purchase of goods and services. Sales tax typically applies when a good or service is sold, transferred, or exchanged. Use tax applies to the storage, use, or consumption of a taxable item or service and does not apply if sales tax was charged. These FAQs will focus on sales tax requirements as they relate to Field Nation as your marketplace facilitator.
The tax you pay to Field Nation is a SaaS (software as a service) tax we’re required to collect on the service fees you pay to Field Nation. The taxable amount varies by state, and it’s based on the state your company is located in. Here’s a list of service fees you may already pay tax on:

– Field Nation Basic overage
– Field Nation Plus package
– Field Nation Premier package
– Specialized skills
– Integrations
– Subscriptions
– OAI administration fees
– General Liability Liaison
– Field Nation ONE

This tax isn’t changing. (Note: finance fees are not currently subject to tax in any state.)

The sales and use tax is due to marketplace facilitator laws being passed in several states. Field Nation is required to collect applicable sales and use tax on the work taking place in those states. Here’s a list of the work order gross labor and expenses that may be subject to tax:

– Services (can vary by service type)
– Expenses
– Cancellation fees

In many cases, this tax is being paid by the end company requesting the work (your customer). If your company is reselling the purchased services to your customer, please provide Field Nation with a valid exempt or resale certificate for each state that requires sales and use tax where you do field work – or you’ll be charged tax on the total value of each work order.

Field Nation will collect transaction value tax on the total value of each work order unless we have a tax exempt or resale certificate on file for each state that requires a tax.
When a contracted provider is physically present at your customer’s location, this creates physical nexus for your business – which then creates a registration requirement in that state. (Note: recent legislative updates are centered around economic nexus, but these thresholds don’t apply when physical nexus has been created.)

Field Nation is required to collect sales tax on certain fees and applicable purchases of goods and services unless your company is exempt. What is taxable, as well as what the tax rate is, varies by state. Check out this matrix to see which states require sales tax on which service categories.

A field called ‘Service Type’ in the work order create process will be used to calculate applicable sales and use tax upon work order approval. Select one Service Type that is most applicable to the work being performed. The Service Type can be changed up until the work order is approved.

For the most updated sales tax nexus laws and collection requirements by state, please reference this document from our tax compliance partner Avalara.
Sales and use tax is required on most field service transactions. In many cases, this tax is being paid by the end company requesting the work, meaning your company could be exempt depending on your company’s facts and circumstances.

In order to be considered exempt, you’re required to show proof of exemption via a state tax exempt form (or multi-jurisdiction form if the state accepts those) or resale certificate that can be granted through each state’s office where you conduct business.

Note: sales and use tax is calculated based on the site location of the work order – not your company’s location as listed in your company profile.

If you’re not sure whether or not your company is exempt, we recommend consulting your accountant or tax advisor to see if you qualify for a sales and use tax exemption in the states where you conduct field service work.
The following states currently have marketplace facilitator laws and require sales and use tax on services. Field Nation will be collecting tax on the total value of the work order for work being done in these states:

Alabama, Arkansas, Arizona, California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri (as of Feb 1, 2023), Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.

The following states have marketplace facilitator laws but do not currently tax services. Field Nation will not be collecting tax on work done in these states:

Alaska (locals), Maine, and North Dakota.

The following states do not have marketplace facilitator laws. Field Nation will not be collecting tax on work done in these states:

Delaware, Montana, New Hampshire, and Oregon.

During work order create, you will see the estimated tax amount based on the state where the work is taking place, and the type of work and service type selected. If your company is tax exempt, and we have a valid exempt or resale certificate on file for that state, the estimated tax amount will show $0.00. (Note: Hawaii’s 0.5% General Excise Tax (GET) will be collected and is not eligible for resale exemption.)

(Updated Feb 9, 2023.)
Economic nexus remote seller thresholds do not apply. When a contracted provider is physically present at your customer’s location, it creates physical nexus for your company in that state.

Field Nation collects sales tax for states with existing marketplace facilitator rules to comply with current laws. We will collect tax from our customers for states where we do not have a valid exempt or resale certificate on file, or if you are not reselling labor and expenses provided in the work orders.

Tax Exempt / Resale Certificates

Field Nation has partnered with tax compliance firm Avalara to collect our customers’ exempt and/or resale certificates. Avalara uses a software called CertCapture that provides a secure portal through which you can upload your exempt and/or resale certificates.

If you have admin access to the Field Nation platform, you can create a certificate by entering your exemption information. Visit this page and click ‘Create Certificate’.

You may also submit your certificates to [email protected] and our team can upload them to CertCapture on your behalf. Please note: tax exempt and/or resale certificates are stored in CertCapture, not the Field Nation platform.
A resale certificate is a document proving you are a legitimate retailer and are buying products/services to either resell or use as component parts of products/services you plan to resell. It’s a form issued to suppliers like Field Nation, and it includes a spot for your resale license/permit number.

A retail license is issued to businesses and individuals who sell goods and services subject to sales tax. We cannot accept resale licenses for exemption purposes; you must submit a valid resale certificate.
Most states require certain information in order for a resale certificate to be valid, including:

– Name and address of purchaser (your company)
– Name and address of seller (Field Nation, 733 Marquette Ave S. Ste. 800, Minneapolis MN 55402)
– Registration number of purchaser (your company)
– Description of business (what your company does)
– Description of taxable service or property being purchased for resale (e.g. “repair services”)
– Reason for exemption (e.g. “resale”)
– Date, signature, and title of authorized individual at the purchaser

Please make sure your certificate(s) contain all the necessary information before submitting to Field Nation to help expedite the validation process.

Required Service Type Overview

‘Service Type’ is required to help us calculate applicable sales and use tax upon work order approval (see screenshot below).

The types of services that are taxable, and what the tax rate is on those services, varies by state. In order to calculate applicable sales and use tax, we need to know what type of service each work order is considered.

If your company is tax exempt, and we have a valid exempt or resale certificate on file for the state where tax is applicable, you will not be charged sales and use tax.

Service Type Definitions

For tax assessment purposes, real property is land, or anything permanently affixed to the land, e.g. offices and commercial buildings.

– An example of ‘Installation – Real Property’ is running wires/cables within the building.
– An example of ‘Removal – Real Property’ is removing alarm system equipment and wiring, or removing an existing HVAC system.
– An example of ‘Repair – Real Property’ is replacing wires/cables within the building, or updating existing equipment within the building.