Tax Shipping in the U.S.?

General General Questions
1

I’ve installed and configured several CS-Cart installations for companies in the U.S. I always set up the store to collect state sales tax where the company has nexus. Should I also configure the stores to collect state sales tax on the real-time shipping fees from UPS, FedEx, USPS, etc.?

2

The requirement to Tax Shipping charges is dependent on the state. I am in Pennsylvania and I have to collect pa sales tax on the entire order including the added shipping charge, if shipped to a Pennsylvania address. Other states may not require this.

Bob

3

Besides paying an attorney or accountant way too much for a simple answer, where could I get the requirements for my state?

4

Hi,

I originally searched the PA department of revenue site and got my requirements.

Did a fast search on google and got the same answer from Yahoo Answers, same as on the PA site:

Yes. According to the PA Department of Revenue:

“If the item(s) being shipped is taxable, the shipping and handling charges are also subject to tax. If the item(s) being shipped is not subject to Sales Tax, neither are the shipping and handling charges. In the case where items being shipped are of a mixed (both taxable and nontaxable) nature, then the shipping and handling charges for the entire shipment are subject to tax.”

Source(s):

[url]Error



General website: www.revenue.state.pa.us



I would always find the answer on the official website.

Bob

5

I found this. Sounds like I need to collect tax on shipping.

[quote]Delivery Charges



(IC 6-2.5-1-5 and IC 6-2.5-4-1. March 18, 2004)



Effective January 1, 2004, Indiana sales tax was applied to delivery charges regardless of the terms of delivery. The Legislature has now made further clarifications effective March 18, 2004. Delivery charges are now defined in the statute as charges by the seller for preparation and delivery of the property to a location designated by the purchaser of the property, including transportation, shipping, postage, handling, crating, and packing. A transfer of property does not occur until after delivery of the property to the purchaser.[/quote]