Handling EV charging sales tax in the US with AMPECO and TaxJar

Managing sales tax in the United States can be incredibly intricate due to its decentralized nature. Instead of a uniform federal regulation, 46 of the 50 states have their own sales taxes, commonly referred to as “state sales tax.” Delaware, Montana, New Hampshire, and Oregon have chosen alternative forms of taxation or revenue generation, which is why they do not have a statewide sales tax.

Typically, sales tax isn’t included in an item’s listed price but is calculated and added during the transaction. Compounding the complexity, various counties, cities, or special districts may impose additional sales taxes and regulations, known as “local sales tax.” 

What does this look like in an EV charging scenario? Imagine an EV driver from Texas starting a session on a charger in Oregon, which is owned by a company registered in Louisiana. Which sales tax should be applied? Navigating sales tax obligations across multiple states and jurisdictions requires a sophisticated approach, and that’s where AMPECO and TaxJar come into play.

Two powerful solutions to address your sales tax needs

TaxJar integration

For EV charging network providers operating across multiple states, managing numerous B2B partners, or utilizing roaming services, we highly recommend our TaxJar integration. It simplifies the complex process of setting up, calculating, and reporting sales tax.

TaxJar is an out-of-the-box integration available for AMPECO clients, designed to streamline the sales tax process. It automatically fills in all sales tax codes, service types, exceptions, and other relevant details using the user’s address and the charger’s location to calculate accurate sales tax. During the session, users see an “estimated” sales tax, with the “final” amount calculated at payment. It is important to note that AMPECO can easily integrate with any other provider similar to TaxJar upon client request by using our existing backend calculation logic.

What you get

• Instantly calculate accurate sales tax using address validation.
• Receive detailed, up-to-date reports on sales tax collected or due to different states or jurisdictions.
• Automatically submit returns and remittances to each jurisdiction, ensuring compliance and timely payments.

AMPECO’s built-in functionality

This solution is ideal for EV charging network providers that operate within a single state, with few B2B clients and no roaming services. Setting up, calculating, and reporting sales tax for these network operators is relatively straightforward.

The network operator must manually set all sales tax codes, service types, and exceptions. Our built-in functionality calculates the sales tax based on the charger location, covering the most common use cases. This system provides a straightforward yet effective way to manage sales tax for operators with simpler needs.

What you get

• Granular tax application: Network operators can apply different sales taxes to each tariff component.
• Detailed receipts: All tariff components are split by type with the respective tax shown in the session receipt for better visibility for the EV driver.
• Tax exceptions: Network operators can set sales tax exceptions by state or zip code.
• Customizable calculations: Sales tax calculation is based on fixed parameters provided and set in the backend.
• Future reporting capabilities: While we currently do not offer end-of-month sales tax reporting, we plan to implement this feature soon.

Simplifying EV charging sales tax management in the US

AMPECO supports EV charging network operators in the USA by tackling one of the most challenging operational issues they face: managing sales tax across multiple states and jurisdictions. EV charging network operators need a reliable solution that handles sales tax setup, calculation, and reporting so they don’t have to worry about it. Avoiding mistakes, missed deadlines, and fines is crucial, so finding a dependable partner to manage these complex tasks is essential.

We provide two solutions. Our integration with TaxJar is the default choice for comprehensive tax handling in the US. It ensures accurate calculation, detailed reporting, and automated submissions, making it ideal for multi-state operations and complex scenarios involving numerous B2B partners or roaming services. On the other hand, our built-in functionality offers a streamlined approach for operators with simpler requirements, such as those operating in a single state without extensive B2B interactions. This solution provides granular control over tariff components and straightforward tax calculations based on fixed parameters.

In addition to these powerful solutions, we combine our legal expertise with extensive client experience to offer personalized consultations, helping you effectively navigate your unique tax challenges. By leveraging these solutions, you can focus on growing your business while we manage the intricacies of tax compliance.