Thread: Its now costing Even MORE!

The only logic I would agree on is that if you charge the official shipping rate one should not be taxed on the shipping charge as the post office is already paying taxes on it but any amount that you tack on should be taxed as that would be considered profit. Same with any shipping and handling fees. In NV we don't charge sales tax on the shipping charge. In the end I don't make the rules, i just follow them as getting audited is a headache and I like to sleep with a good conscience.

Originally Posted by Maximilian

The only logic I would agree on is that if you charge the official shipping rate one should not be taxed on the shipping charge as the post office is already paying taxes on it but any amount that you tack on should be taxed as that would be considered profit. Same with any shipping and handling fees. In NV we don't charge sales tax on the shipping charge. In the end I don't make the rules, i just follow them as getting audited is a headache and I like to sleep with a good conscience.

Amen to that. As a business owner, I fully expect to be audited sooner or later, and things like this are a good way to get hefty fines.

Btw it depends on state law of course. In Europe we have VAT as you know so it is passed on through the chain to the final customer. That is very similar to you paying sales tax on the amount you tack on to shipping charge (if applicable). The end result of sales tax and shipping tax are very similar. The way I understood it, it is a different way of doing things.