Shipping Tax

[AbbieRose]

If you are coding a store, how do you deal with tax on shipping? Is tax ever charged on shipping (per regional rules) or is it always tax free?

 

[HostMantis]

If you are coding a store, how do you deal with tax on shipping? Is tax ever charged on shipping (per regional rules) or is it always tax free?

It depends on the company really. Most online companies don't charge sales tax because technically they don't need to if you do not reside in the state which the company is legally registered.

However, some companies will charge sales tax if your shipping address is within the state they operate, while others just add a little extra to the cost of the item to cover sales tax.

Again, it depends on the company and how they choose to operate.

 

[AbbieRose]

You know, I've honestly never seen a site that only charged tax on a purchase I made in state. I get charged tax even when I shop from the US to the UK, and then I have to pay import tax as well!

 

[Attorney Jaffe]

Unfortunately, there is no 10 word answer to your question. Sales tax laws are a local issue, and their content is different.

Generally, F.O.B. freight is sales tax exempt. Generally, Shipping and handling charges billed by the selling company are subject to sales tax.

However, each taxing authority has different rules, Ohio's laws are very different from New York or Iowa. And to make matters worse, cities and counties have their own rules.

I know as a web site coder this presents a nightmare scenario - I feel your pain.

 

[SenseiSteve]

Thanks for the info, Andrew Jaffe, Attorney at Law. Welcome to Hosting Discussion.