Tax Regional Addendum

Last updated: July 29, 2026 · Canada and United States (v1)

This Tax Regional Addendum (“Addendum”) is incorporated into the ParqZen Terms of Service. It describes how ParqZen calculates, displays, collects, and settles taxes for platform charges and contractor towing release amounts in Canada and the United States. Stripe processes payments only; Stripe does not calculate tax.

1. Roles

  • ParqZen sells its own software and service fees (for example subscription / strata SaaS, find-vehicle platform fees, and ParqZen marketplace surcharges).
  • Towing companies are independent contractors. ParqZen does not sell towing as principal and is not a reseller of the tow/release.
  • Release fees are the tower’s charges. When ParqZen collects them (Mode A), it facilitates payment and settlement to the tower. When the tower collects at the yard (Mode B), the tower handles collection and any tax remittance for that charge.

2. How tax is calculated in the product

Tax is resolved from configured regional rules keyed by billing country and postal subdivision code (for example CA+BC, US+WA). Rules may include multiple components (GST, PST, HST, QST, or US sales tax) with per-component rates and collect/exempt flags. Checkout and invoices may show one or more explicit tax lines. Where no component is collected, the product may display a disclaimer that tax was not collected.

3. Canada

3.1 Platform / ParqZen fees

ParqZen calculates and, where required, collects applicable GST, HST, PST, and/or QST on ParqZen-owned categories (including subscription / strata SaaS, find-vehicle platform fees, and ParqZen surcharges), using the rates and collect flags configured for the jurisdiction. ParqZen remits tax it is required to collect as seller of those services.

3.2 Contractor release (tower_release)

Tax lines attributed to towing release are settlement amounts for the contractor’s charge, computed from regional rules (including exemptions). They are not ParqZen’s sale of a tow.

  • Mode A (ParqZen collects): the motorist pays the release fee plus any taxable release tax lines; ParqZen settles fee + those tax lines to the tower via Connect. ParqZen does not remake the tower into a reseller relationship.
  • Mode B (tower collects): the tower collects release amounts (and any applicable tax) at the yard and remains responsible for its own remittance obligations.

3.3 British Columbia note

Automobile towing services are generally PST-exempt in British Columbia. Product rules therefore treat tower_release PST as non-collectable while GST may still apply when configured. Because ParqZen is not the seller of the tow, there is no “tax on a tax” or double PST via a resale fiction: ParqZen taxes only its own fees, and release tax (if any) is settlement for the contractor.

3.4 Other provinces and territories

HST jurisdictions typically use a single HST component where configured. Québec may use GST + QST. Other provinces use GST and/or PST components as configured. Collect/exempt flags are data-driven per category and component.

4. United States

State and local sales tax treatment varies. ParqZen applies configured sales_tax (or equivalent) components with per-category collect flags for platform fees and, where applicable, contractor release settlement lines. Registration identifiers may be configured in the product for invoice labeling; operators and towers remain responsible for maintaining their own tax registrations and remittances as required by law. Nexus and exemption determinations are not legal advice—this Addendum describes product behavior only.

5. Mode A vs Mode B summary

  • Mode A: ParqZen collects release fee + taxable contractor tax lines and settles that total to the tower; ParqZen remits only tax on ParqZen-owned fee categories.
  • Mode B: tower collects at the yard; ParqZen’s checkout may omit the release fee; tower handles contractor-side tax.

6. Updates

ParqZen may update this Addendum to reflect rule, exemption, or product changes without re-papering the entire Terms of Service. Material changes will update the “Last updated” date on this page. Continued use of the Service after an update constitutes acceptance of the revised Addendum.

7. Contact

Questions: Contact us. See also the Terms of Service and plan billing pages.