Cisco Learning Delivery Store and Tax Compliance

Effective late August 2022, Cisco will apply any applicable tax for all in-person instructor-led training (ILT) and virtual instructor-led training (VILT) orders to comply with Cisco corporate, federal and local Tax/VAT governance. To access the Cisco Learning Delivery store and other Cisco systems such as the Cisco Commerce Workspace (CCW), you will need a Cisco ID (CCO ID) account.

Click here on how to create a CCO ID

Cisco is introducing the Cisco Learning Delivery store to comply with global tax requirements. This platform will apply associated taxes to in-person instructor-led and virtual instructor-led transactions regardless of payment method.

  • If you redeem Cisco Learning Credits (CLCs) for in-person instructor-led and virtual instructor-led orders, you must also use CLCs to cover the associated taxes for the transaction. We will not be able to split the payment method between CLCs and a credit card.
  • A minimum of 1 CLC will be applied toward tax when collection is required.
  • Tax is calculated based on whether a class is virtual instructor-led or in-person instructor-led training as well as specific state/province/country tax applicability.
  • If your business is tax exempt for purchases, you must provide a Tax-Exempt Certificate when you make your first purchase through the Cisco Learning Delivery store.
  • Review the FAQs below for more information. If you have additional questions, please contact us at learning-bdm@cisco.com.

FAQs

Why are taxes being assessed on ILT and VILT now when they haven’t been in the past?

In-person instructor-led and virtual instructor-led training are taxable events in many jurisdictions, so we have updated our systems to reflect the requirements. Cisco will not pursue customers for taxes associated with past offerings.

What is the difference between assessed tax for virtual versus in-person instructor-led offerings?

Virtual instructor-led offerings are assessed tax based on the billing address of the individual/customer purchasing the offering.

In-person instructor-led offerings are assessed tax based on the location of the offering. 

How would I know which states/provinces/countries assess tax?

The general state/province/country sales tax applies.

How much will the taxes be for an ILT offering?

  • If a customer participates in a virtual offering (whether it’s a private class or a seat in a publicly available class), the taxes are based on the billing address entered during the check-out process.
  • If a customer participates in a in-person instructor-led offering (whether it’s a private class or a seat in a publicly offered class), the taxes are based on the location in which the actual offering is held.
  • The customer will see a final price at checkout and can use the checkout form to determine exact pricing.

Where can I find my account and orders for ILT classes?

If you have purchased a class or seat through the Cisco Learning Delivery Store, you can find your order in your “My Account” page.

Can I pay for in-person instructor-led and virtual instructor-led classes with Cisco Learning Credits (CLC), and then pay tax with a credit card?

No. If you pay for an offering with CLCs, you must pay for the entire transaction with CLCs, which will be rounded up to the nearest whole number.

Why are Cisco Learning Credits (CLC) rounded up to pay for the offering?

Each Cisco Learning Credit is worth the equivalent of a whole number and cannot currently (at time of publication) be adjusted beyond a whole value. Thus, if the amount of your class is 43 CLCs, and your tax is 2.25 CLCs, then you would be required to round up for a total price of 46 CLCs.

Could I be taxed on Cisco Learning Credits (CLCs) twice when redeeming them for in-person instructor-led and virtual instructor-led orders?

Except for India and Australia, a company is not liable for tax twice regarding Cisco Learning Credits. CLC purchases made via the CCW platform are non-taxable unless a company is in India or Australia. The only taxable event, unless a company purchased CLCs while located in India or Australia, is the actual in-person instructor-led training (ILT) service offering.

What happens if negotiations and discussions were already underway for an offering, and the taxes now drastically change any quotes?

Each situation will be handled on a case-by-case basis, and Cisco will be fully transparent. Please contact your Business Development Manager (BDM) or reach out to learning-bdm@cisco.com with questions.

I have a tax-exempt certificate present in CCW. Do I still need to provide one to Cisco when paying for in-person instructor-led or virtual instructor-led classes?  

Yes. Whenever you have selected a new service and are completing the checkout process, a tax-exempt certificate or proof (e.g., VAT) may be required. Cisco suggests that any individual who purchases on behalf of a tax-exempt organization maintains a copy of the certificate/VAT for easy access.

NOTE: Digital River US (US sales) or Digital River Ireland (International sales) is the reseller of record for the Cisco Learning Delivery store. Any Tax-Exempt Certificate must note Digital River as the seller.

How does a customer know if they have the correct tax-exempt certificate?

The certificate a customer submits during the checkout process must be for the same jurisdiction with which the tax is associated. For example, if a class is being taken onsite in Florida; however, the tax-exempt certificate is for Delaware, the certificate may be rejected, and the customer may be liable for sales tax.

What happens if the Tax-Exempt Certificate is rejected?

Secondary validations are conducted after registration/checkout. If a certificate or VAT is rejected, a member of the payment processor, Digital River, will reach out to the requestor.

I’m a State and Local Government and Education (SLED) account. Do I share a certificate?

Possibly. Please contact learning_bdm@cisco.com for further questions.

Who is Digital River?

Digital River is an Authorized Reseller acting as Merchant of Record on behalf of Cisco Systems, Inc. This ensures that applicable tax calculations and regulations are maintained. The transaction of purchasing an item on the Cisco Learning Delivery Store goes through Digital River, Inc.

In the United States, this is “Digital River US”. If international, this is “Digital River Ireland”.

What if I’m tax-exempt and accidentally checked out with tax?

Tax-exempt entities can request a refund of the tax paid on an order. Digital River will need a copy of your tax-exempt certificate and the billing or shipping address on the order must match the address on the certificate. Please include your order number or a copy of your receipt or invoice (found in the Cisco Learning Delivery Story account page). You can email a copy of your certificate, with order number or invoice to cstaxexemptions@digitalriver.com. This email address is monitored 7days/week and a 24-hour response time should be expected. Once proof of tax exemption has been received, our Customer Service team at Digital River will ensure that the correct amount is returned to you.

How will the charge show up on my credit card?

The charge for your order will appear on your credit card as: "DRI*Cisco"

Tax Exemption Information:

As part of the Cisco Learning Delivery Store release, the payment process will now require a Tax-Exempt Certificate if the Customer is an eligible tax-exempt organization. Producing this certificate will allow a qualifying organization to pay without including tax. Eligibility is determined by applicable tax laws. A few important notes: 

For US tax-exempt companies:

  • Even if you apply for federal tax-exempt status, this exemption is not applicable for state taxes. You must have a state-specific, tax-exempt certificate in order to apply the certificate at checkout for an ILT offering. Note: See the FAQ on virtual vs. on-site tax calculation to determine how to best apply this certificate.
  • If you are in a jurisdiction that does not tax ILT Offerings, you won’t be assessed tax at checkout, and thus an attached tax-exempt certificate will not adjust the price. If you are in a jurisdiction that does tax ILT Offerings, you must attach your tax-exempt certificate in order to make the order tax free.
    • Each state has a different process on how to produce a seller-specific, tax-exempt certificate. Typically, this can be done online.
    • Ensure that the seller for tax-exempt certificates is Digital River US.
    • If you are purchasing multiple offerings, consider selecting the “blanket” certificate type instead of “single.” This will allow the certificate to remain associated to your Cisco Learning Delivery Store account.
  • Federal Tax-Exempt Status:  This is a status that organization must apply for and maintain through the United States Internal Revenue System (IRS). You can learn more and apply for tax-exempt status here.
  • If you are not sure whether you are a tax-exempt organization, you can do a quick tax exempt company search.
  • The certificate will be requested during the check-out process.
  • This certificate is typically maintained by the finance or purchasing department of an organization. If you do not have the certificate in your possession, we encourage you to reach out proactively to your internal team and obtain a copy before you start the check-out process.
  • If you cannot find a copy of your certificate, you can request a certificate two different ways:
    • If your company completed the initial application (typically after 2020) online, the originator can log in to their online account and download a copy.
    • If your company completed the application via mail or before 2020, you can complete a Form 4506-A to request a copy.

For international tax-exempt companies:

  • Most countries have a version of Tax-Exempt status, and it’s produced to US companies by way of a VAT number. Methods on how companies are identified, the ways they apply and maintain tax-exempt status, and their proof of tax-exempt status vary.
  • For specific questions related to a specific country, please contact cisco-class-support@cisco.com, and we will assist you in locating the appropriate information.