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Sales Tax on Shipping: When Does it Apply?

TaxConnex

But even a portion of taxable items renders a whole shipment’s shipping cost subject to sales tax in Kentucky, New Mexico, New York and Pennsylvania. Stating the shipping cost separately on the invoice affects its taxability in Alabama, Arizona, Illinois, Iowa, Maryland, Oklahoma, Utah, Virginia and Wyoming.

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The latest on sales tax on shipping charges (part 1)

TaxConnex

Online sales could not exist without shipping, and the charges associated with shipping are subject to sales tax in many states. Question is, who has to pay that sales tax these days, and where? For sales tax purposes, you’ll see reference to “shipping,” “shipping and handling” (Arizona taxes these two, for instance) and “delivery”.

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The latest on sales tax on shipping charges (part 2)

TaxConnex

Stating the shipping cost separately on the invoice, for instance, affects taxability in Alabama (as does how the item is delivered), Arizona, Iowa, Maryland, Massachusetts (if the shipping cost “reasonably reflects” the vendor’s real cost), Missouri and Wisconsin – but not in Tennessee.

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Sales Tax Issues for Online Retailers

Withum

While cities and counties have their own sales tax rate in many states, most cities and counties follow the taxing rules of their home state. Thus, the state legislature that sets the rules for sales tax for online retailers at the state level is implementing them locally also. Contact Us. Let’s Chat.

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Eliminate Manual Work and Accelerate Accounts Receivable

CPA Practice

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The Collaborative Accountant

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