Does It Matter How I Ship The Goods?

Understand the impact of transportation tax within your business.

One of the factors that affects the taxability of freight is who provides the delivery. Whether shipping is a necessary part of the sales transaction can affect whether it is taxable. When a seller sends freight by common carrier or the postal service, it is less clear whether doing so is a necessary part of the sales transaction. If the grocery store were to use its own trucks to transport the produce, doing so would indicate that shipping is a necessary part of the sales transactions and make the freight taxable in many states.

To learn more about taxability differences for shipping and handling, check out our e-book on the 5 Factors for Freight Taxability.