Is shipping taxable? The answer may surprise many – even large and well-established companies!
The answer actually depends on the state that you ship from
Different states handle shipping charges different ways. Some say shipping is taxable on all goods sold. Others have crazy rules which make wording and presentation around the purchase paramount and pretty much take a tax accountant to help you figure out
What you don’t know CAN hurt you
Let’s say you are in a state that requires taxing the shipping charges and you go for say four or five years without charging taxes on these shipping charges. No harm done, right?
Well, just wait until audit time (or surprise audit time) and you may find out differently.
Watch the video below to find out more about whether you should be charging taxes on shipping charges.