In some jurisdictions, Obsidian is required to collect sales taxes on behalf of customers purchasing software licenses and services. Sales taxes may apply to [[Commercial license|Commercial licenses]], [[Introduction to Obsidian Sync|Obsidian Sync]], and [[Introduction to Obsidian Publish|Obsidian Publish]]. Sales taxes generally do not apply to [[Obsidian Credit]] and [[Catalyst license|Catalyst]] though exceptions do apply.
To determine the taxes applied to your purchase, we use the country and postal code you provide at checkout or in the Billing section of your dashboard. This information is stored on your account so that we can accurately charge sales tax if there is a change in tax law or other requirements that obligate us to do so.
## Tax exemption
Depending on your country and status, you may be exempt from taxes by submitting your Tax Identification Number (TIN), VAT Number, VAT ID, or tax exemption certificate.
You can apply for a tax exemption via the Billing section of your [Account dashboard](https://obsidian.md/account/billing). If your application is approved, future purchases will not be charged taxes.
### Applying for an exemption
1. Log into your [Obsidian account](https://obsidian.md/account/billing).
2. Navigate to the [Billing](https://obsidian.md/account/billing) section.
3. To the right of _Tax Exemption_, select the **Manage** button.
4. In the pop-up window:
1. Enter your country.
2. Enter your postal code, if applicable.
Depending on your country, you may be required to submit a VAT number, or tax exemption certificate.
- VAT number
- Enter your VAT number and select **Save** to submit your application.
- Tax exemption certificate
1. Under _Tax exemption certificate_, select the **Browse** button to choose your sales tax exemption certificate from your device. Ensure the file is in `.pdf` format and is less than 3 MB.
2. After choosing the file, select **Upload** to submit your application.
The verification process may be instantaneous depending on your location. Once approved, future purchases will not be charged taxes.
> [!note] Note: applying for a tax exemption will also update your billing address to the postal code you chose.