Not surprisingly, very few people are actually amused by Chicago’s new tax, dubbed the “amusement tax” since it applies to any and all kinds of entertainment, including streaming entertainment (such as Netflix and Hulu), along with cloud computing services and online subscription databases (such as Amazon Web services). This tax—the first of its kind—took effect in July.
This tax is causing headaches for those companies that are subject to it and who have customers in the city of Chicago. Those customers will have to be charged a different tax rate based on the address listed on their account, otherwise the merchant may face penalties for failing to collect the tax.
If you’re a Recurly merchant with customers in Chicago, and your business falls into one of the categories subject to this new tax, you are likely already grappling with the ramifications of this tax on your invoicing. If so, Recurly’s partnership with Avalara, a tax automation solution, may be the answer to your amusement tax woes.
Recurly is a certified partner for Avalara AvaTax, allowing Recurly merchants to directly integrate their Avalara AvaTax account with their Recurly site. This integration automates a merchant’s sales tax process and includes precise tax rates (with “rooftop-level accuracy,” i.e. down to the parcel), taxability rules, jurisdiction-source rules, detailed tax reporting, and other Avalara add-on services. Read our Documentation page for more detail and this page, on Avalara’s website.
If you don't already have an AvaTax account, sign up here. Want to learn more about Avalara AvaTax? Click here.
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The value of Recurly is that we no longer have to worry about the different aspects of subscription management. Instead, we can focus on things that are our core competency, like adding value to our service and expanding our offering. That’s been a huge win for us.