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.

Five Factors of Freight Taxability

The rules for the taxability of freight or delivery charges vary from state to state. How do retailers figure out when freight and shipping charges are subject to sales and use tax?

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